The IPO of L&T Technology Services subscribed by 2.53 times on the last day offer. The 900-crore public offer received bids for around 1.84 crore shares against 72.80 lakh shares offered by the company. The company is an arm of engineering conglomerate Larsen & Toubro. The issue was opened for subscription on September 12. The company has fixed a price band of Rs 850-860 for the public offer. Shares of the company are proposed to be listed on NSE and BSE.
L&T Technology had garnered over Rs 268 crore from anchor investors last week. DSP Merrill Lynch, JM Financial Institutional Securities, Kotak Mahindra Capital Company and SBI Capital Markets are the merchant bankers to the issue. The company provides innovative engineering as well as research and development services across sectors.
The objective of the issue is to reap the benefits of listing the equity shares on the stock exchanges and to carry out the sale of up to 1.04 crore equity shares by L&T. L&T Technology Services will not receive any proceeds from this offer.
The company has long-standing relationships with its customers, which include more than 50 leading Fortune 500 companies and technology leaders in their industry including P&G, UTC, Danaher, Eaton, Rockwell Automation and Calsonic Kansei.
Brokerage firm KR Choksey Shares and Securities has ‘Subscribe’ rating on the issue for long term. The brokerage house in a research note said, “We are positive on company due to strong parentage, market growth opportunities, market penetration opportunities and likely higher share of new technologies going forward which will improve margins and drive future growth for the company.”