The IPO gets bids for 1.51 crore shares
IT outsourcing services provider Larsen & Toubro Infotech (L&T Infotech)'s initial public offer (IPO) received bids for 1.51 crore shares compared to 1.22 crore shares on offer, data on NSE showed as at 17:00 IST. The IPO was subscribed 1.23 times on the first day of bidding today, 11 July 2016. L&T Infotech's IPO opened for bidding today, 11 July 2016 and closes on 13 July 2016.
The company's promoter and engineering & construction major L&T is selling a part of its stake through the IPO of L&T Infotech. L&T Infotech will not get any funds from the IPO and the entire sale proceeds will go to parent L&T. L&T is selling 1.75 crore shares of L&T Infotech through the IPO. Retail investors will get a discount of Rs 10 per share on the final price discovered through the book building route.
The company raised Rs 372.75 crore from selling 52.5 lakh shares to a slew of anchor investors, including mutual funds, insurance companies, banks and foreign institutional investors (FIIs). The issue of shares to anchor investors has been priced at Rs 710 per share -- the top end of the Rs 705-710 per share price band for the IPO. Foreign fund Auburn Limited is the biggest anchor investor in the L&T Infotech IPO. It has been allotted 22.53 lakh shares constituting almost 43% of the anchor investors' portion.
HDFC Mutual Fund is the second biggest anchor investor in the IPO. It has been allotted 5.63 lakh shares. Among other major anchor investors, foreign fund FIL Investments (Mauritius) and New India Assurance Company have been allotted 2.81 lakh shares each. Prudential ICICI Technology Fund has been allotted 2.11 lakh shares. L&T Infotech has got a total of 22 anchor investors.
L&T Infotech, part of the L&T group, offers an extensive range of IT services to clients in diverse industries such as banking and financial services, insurance, energy and process, consumer packaged goods, retail and pharmaceuticals, media and entertainment, hi-tech and consumer electronics and automotive and aerospace. New and emerging technologies accounted for 11.1% of the company's revenue from continuing operations in the year ended 31 March 2016 (FY 2016). L&T Infotech plans to invest seed capital in startups to gain from innovation capabilities and digital offerings of startups. L&T Infotech is dependent on North America and Europe regions for most of its business. The North America region contributed 69% of the company's revenue in FY 2016. The contribution from Europe to total revenue was 17.4% in FY 2016.
Based on consolidated financial performance, the company's net profit rose 19.89% to Rs Rs 922.17 crore on 17.45% growth in revenue from operations to Rs 5847.06 crore in the year ended 31 March 2016 over the year ended 31 March 2015. The company has no formal dividend distribution policy.
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