L&T Technology Services (LTTS) IPO was subscribed by 71 per cent on the second day of offer till 5 pm. The public offer received bids for 51.38 lakh shares against 72.80 lakh shares offered by the company. The issue opened for subscription on September 12 and will close on September 15 (Thursday). L&T Technology has fixed a price band of Rs 850-860 per equity share. The object of the issue is to achieve 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. LTTS will not get any proceeds from this offer. Retail investors can bid for a minimum of 16 equity shares and in multiples of 16 equity shares thereafter.
L&T Technology Services has alloted 31.20 lakh equity shares to anchor investors at Rs 860 per equity share aggregating to Rs 268.32 crore.
According to Sharekhan, at a price band of Rs 850-860, the IPO is priced at 20.7-21 times 2015-16 consolidated earnings per share (EPS) of Rs 41. LTTS has better return ratio and earning profile than peers and some of the pure mid-cap IT service companies. At the upper price band of Rs 860, the price-to-earnings ratio valuation stands at 21 times based on the FY2016 earnings.
Kotak Mahindra Capital, JM Financial Institutional Securities, DSP Merrill Lynch and SBI Capital Markets are the book running lead managers to the issue. Equity shares of the company are proposed to be listed on NSE and BSE both.