L&T Technology Services, whose initial public offering opened on Monday, was subscribed 0.18 times on day one as investors bid for 12.9 lakh shares of the total 72.8 lakh shares on offer. The IPO aims to raise Rs 894 crore through an offer for sale by promoter Larsen & Toubro.
The issue on the first day received bids for 5.78 lakh shares from qualified institutional investors of their quota of 20.8 lakh shares. Retail investors on the other hand bid for nearly 0.19 times or 6.91 lakh shares of the 36.4 lakh shares reserved. High-net-worth individuals bid for 24,288 shares of the 15.6 lakh shares reserved for them, bidding 0.02 times.
The price band for the issue is R850-860 per share and the issue will close on September 15. On Friday, the company allotted 31.2 lakh equity shares, aggregating to an approximate amount of 268.32 crore to its anchor investors including Sundaram Mutual Fund, DSP BlackRock, JP Morgan, Oaktree Emerging Markets Holdings, HDFC Trustee, ICICI Prudential, Tata Mutual Fund, Morgan Stanley Mauritius among others.
For the year to March 2016, L&T Technology Services’ total revenue grew by 14 % year-on-year and net profit was up by 37.8% at Rs 434 crore.
L&T Technology Services is engaged in providing engineering, research, and development (ER&D) services to manufacturing, technology, and process engineering companies.
The company operates in five industry segments- transportation, industrial products, telecom and hi-tech, process industry and medical devices.