L&T Technology Services’ initial public offering (IPO) was subscribed 2.49 times on Thursday, the concluding day, as investors bid for 1.81 crore shares of the total 72.8 lakh shares on offer.
The IPO aims to raise `894 crore through an offer for sale by the promoter Larsen & Toubro in a price band of `850-860 per share.
The issue received bids for 1.04 crore shares from qualified institutional buyers or more than their quota of 20.8 lakh shares. Retail investors on the other hand bid for nearly 1.67 times or 60.7 lakh shares of the 36.4 lakh shares reserved for them.
High-net-worth individuals bid for 16.04 lakh shares of the 15.6 lakh shares reserved for them, bidding 1.03 times.
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 % while the net profit was up 37.8% at `434 crore. L&T Technology Services is engaged in providing engineering, research, and development 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. The major portion of the company’s revenues come from the US and Europe.
The book running lead managers to the issue are Kotak Mahindra Capital, DSP Merrill Lynch, JM Financial Institutions and SBI Capital Markets.