L&T Infotech IPO

L&T Infotech IPO

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L&T Infotech LogoL&T Infotech IPO

Established in 1996, L&T Infotech offers an extensive range of IT services to its clients in diverse industries such as banking and financial services, insurance, energy and process, consumer packaged goods, retail and pharmaceuticals, media and entertainment, hitech and consumer electronics and automotive and aerospace. In 2014, NASSCOM ranked it the sixth largest Indian IT services company in terms of export revenues. Its clients comprise some of the world’s largest and well-known organisations, including 41 of the Fortune Global 500 companies.
Headquartered in Mumbai, L&T Infotech leverages the strengths and heritage of its promoter, Larsen & Toubro Limited, a leading Indian conglomerate in engineering, construction, manufacturing, finance and technology. Besides India, L&T Infotech provides services globally and the percentage of its revenue from continuing operations from North America, Europe, Asia Pacific and the rest of the world amounted to 68.6%, 17.9%, 2.4% and 6.9%, respectively. As of June 30, 2015, it had 22 Delivery Centres and 42 sales offices globally.

L&T Infotech Promoter – Larsen & Toubro Limited 

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Subscription Dates11-13 July 2016
Price BandINR705 – 710 per share
Issue SizeINR1,400 crore
Face ValueINR1 per share
Minimum Bid20 shares
Retail Allocation35%
Listing OnBSE, NSE
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The IPO is an offer for sale (OFS) by L&T and L&T InfoTech will not receive any proceeds from the IPO.

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Name of shareholder Equity Shares Percentage (%)
L&T161,250,00094.96
AM Naik871,8750.51
VK Magapu420,0000.25
YM Deosthalee281,2500.17
Vina Badami140,0000.08
Vivek Shiroor138,0000.08
Makarand Deolalkar128,9370.08
Shrinivasan Venkataraman125,0000.07
Kavindra Sharma114,6870.07
Hae Ryong Jeong111,2500.06
Total 163,580,99996.33
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L&T Infotech’s consolidated financial performance (in INR crore)
 FY2011FY2012FY2013FY2014FY2015
Total revenue2,462.63,191.53,873.54,837.15,069.5
Total expenses1,997.32,492.22,980.93,773.23,973.5
Profit from continuing operations after tax316.2419.3510.0659.8760.0
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L&T Infotech’s IPO Subscription Details

CategoryShares offeredSubscription (No. of times)
Day 1Day 2Day 3 
QIB   3,500,0001.765.3819.90
NII   2,625,0000.190.6310.75
Retail   6,125,0001.37 3.807.38
Total  12,250,0001.233.5711.68
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L&T Infotech IPO Allotment Status

L&T Infotech IPO allotment status is available on Link Intime’s website since 19 July 2016. Click on this link to get allotment status.

You can also check your IPO allotment status from your mobile at
http://eipo.linkintime.co.in/ipo/ 
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Listing Performance of L&T Infotech IPO

IPO Opening Date: 11 July 2016

IPO Closing Date:  13 July 2016

Finalisation of Basis of Allotment: 18 July 2016

Initiation of refunds: 19 July 2016

Transfer of shares to demat accounts: 20 July 2016

Listing Date: 21 July 2016

Listing Price on NSE: INR667 per share (discount of 6% on IPO price)

Closing Price on NSE: INR697.6 per share (discount of 1.7% on IPO price)

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52 COMMENTS

  1. L&T Infotech Posts Strong 35% YoY Growth in PAT. USD Revenue Growth at 11% YoY.

    Now ppl will suddenly see great value in this stock. A rally on cards tomorrow.

  2. Now where are the bulls who said it will be good Ipo. Specially bullsinha, he was very positive. All of you called me names but now see the listing and decide

    • Khullar sahab, maan gaye aapko. I had applied and did not get any allotment but the price movement tell it was not a good iPO. What d you suggest for enzyme ipo.

    • I don’t really believe in getting into arguments but for the record, let me clarify. It was a good IPO and was offered at decent valuations and I totally stand by what I said. It is only the solid business and underpricing of IPO which is helping the stock. It is a good company, only a matter of holding for a month or so.

  3. Listing tomorrow, let’s see what it has got for the lucky ones. Sentiments have turned negative for IT after poor results from Infosys and Wipro so making money in L&T Infotech will be difficult. But investors not in the panic mode will do well.

  4. haha Samardeep. i myself got zilch. But i think one should wait before regretting lack of allotment. Who knows! L&T could flop…you will be so happy if the expected pop does not happen 😉

    • I applied for single shot of 20 and got the 20 shares. After nearly 7 times of retail subscription, even I am wondering, how has it happened. Actually it came to me as a shock when I got the SMS.

    • The rules for allocation has changed. They don’t allot on the basis of qty. subscribed, but on the basis of 1 lot per valid application. Once all the subscribers are allotted 1 lot, then the remaining are allotted on the basis of qty applied.

  5. I just got a message that the hold for 14k in my SBBJ account is removed. It looks allocation details are out to banks.

  6. Some people on this forum have too much confidence on their grey market sources, I don’t have. I may be wrong with my confidence in L&T Infotech but will be a buyer if the stock opens lower. I still believe it is inexpensive and has better quality in comparison to what is available in the market.

    Let’s see, allocation and listing is not very far. No point in fighting.

    • ipo grey premium for lnt infotech is falling, confirmed in jaipur market ,around 70 now…ppl are ready to sell their applications for very low

  7. After thinking a lot, I have decide to wait till the last day. I’ll take a call then to apply in this or invest in QUess on listing

    • I’m more and more convinced now that a better strategy is to buy related stocks. Look at L&T. Before the Infotech IPO, it has run up nicely. Same for MGL IPO, buying IGL or Gujarat Gas was one way to benefit from the IPO.

      • Absolutely right, I’m looking for an entry to go long in PNB now, it has run up quite fast but IPO of PNB housing could be a game changer for the stock. I think much of the dirty linen has been washed in this stock.

  8. Prakash Diwan is suggesting not to invest in this IPO. I thinki he is one of the better analysts as far as understanding of the market goes.

    • Yes, sentiments are not very positive about lnt info Ipo but that could easily be the reason why one should invest.

  9. Ppl have opened lots of new demat accounts only to invest in IPOs. Don’t expect undersubscription now in any decent IPO.

  10. As Buffett says, be greedy when others are fearful, I’m going to apply in full force in this IPO. It has no euphoria so better chances of allotment.

  11. IIFL view on L&T Intotech IPO

    Long term investors wanting to add weight in the IT sector should subscribe to the issue without heavy expectations of substantial listing gains. Added sweetener is attractive dividend yield of 4.5% based on FY16 payout.

  12. I am concern of the Trade Recivables from 2014 to 2016 of the ” Other Debts – Others” category.
    2014 – 838 Crores
    2015 – 997 Crores
    2016 – 1057 Crores
    It is been increasing every year with tag of ” considered good”. Why company is not able to collect those on time.

    • Good question. growing receivables simply mean their recovery isn’t as good as it should be. But this sort of thing happens more times than we can imagine if the business is growing. No big deal for a company that generates more than 6k crore.

  13. I am told 2015 EPS was around 47. If this is correct ( I have not gone through RHP)Issue is priced at about 14.9 times. If we take industry average at 16 times the price comes to 752. If the market tanks, then RII may actually face a capital loss. Risk averse investor should not apply to this IPO even for listing gains.

    • I thought exactly the same way Nayak but I have checked prospectus and diluted EPS is 56.13 which means the PE ratio of retail investors will be 12.47. This is less than its peers although l&t infotech has got some badmouthing after it rolled back offer letters to new recruits.

          • Ankit, GMP for L&T Infotech in jaipur is more than 95, actively traded. Please check your source.

          • I have double checked, gmp is not more than 80 and is moving down. Lnt infotech is no Mahanagar or quess.

  14. AN IPo from L&T after a long time, this will do well in the market. Grey market activity must have started, anyone has update?

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