L&T Infotech IPO subscribed fully: Here's what 12 brokerages say

NEW DELHI: The initial public offering of Larsen & Toubro’s IT arm L&T Infotech witnessed good demand from investors, with the issue receiving bids for 1.23 times the total issue size on the Day 1 itself.

Data available with stock exchanges BSE and NSE showed the issue had received total bids for 1.51 crore shares on Day 1, which was 1.23 times the total issue size of 1.22 crore shares.

Read more: L&T Infotech IPO continues to see investor rush, subscribed 1.58 times

Qualified institutional investors bade for 61.59 lakh shares on NSE against the quota limit of 35 lakh shares. This 1.76 times the reserved quota. The retail quota was subscribed by 0.51 times, non-instutitional investor 0.07 times. On BSE, the retail quota was subscribed 0.86 times, followed by NII (12 per cent) and QIB (11,400 shares).
Half of the Rs 1,243 crore issue is reserved for qualified institutional buyers (QIBs). Up to 60 per cent of that quota was allotted to anchor investors later on Friday.

The company had on Friday allotted 52.50 lakh shares to 22 anchors at Rs 710 a share, aggregating to Rs 372.75 crore. Among the anchor investors were HDFC Trustee, Birla Sun Life, Prudential ICICI, Reliance Capital, New India Assurance, Max Life Insurance, BNP Paribas and India Max Investment.

“During FY12-16, The company’s revenue grew 16.4 per cent CAGR to Rs 5,847 crore. Ebitda and net profit grew 10.7 per cent and 20.8 per cent, respectively. The company has a healthy balance sheet with cash and investments of Rs 246 crore. It has maintained high dividend payouts in the last few years, leading to superior return ratios - RoE of 46 per cent and RoCE 52 per cent in FY16,” Centrum Broking said in a note.

Here’s a table showing the recommendations of various brokerages on the IPO:



What select brokerages said on the issue

What CEO Sanjay Jalona has to say on his company’s prospects

Here's what you must know before taking an investment call