L&T Infotech lists at a discount to the issue price
DSIJ Intelligence / 21 Jul 2016
Finally, L&T Infotech has listed on the exchanges, but at a discount. L&T Infotech's pre-opening indicative was down by 6 per cent, which was majorly due to timid results posted by the major IT companies. The IPO, which was oversubscribed by 11.67 times saw a weak start. Probably, the timing of the issue could have hampered the scrips early movements.
Finally, L&T Infotech has listed on the exchanges, but at a discount. L&T Infotech's pre-opening indicative was down by 6 per cent, which was majorly due to timid results posted by the major IT companies. The IPO, which was oversubscribed by 11.67 times saw a weak start. Probably, the timing of the issue could have hampered the scrips early movements.
L&T Infotech settles at Rs 667 per share in pre-opening v/s Rs 710 the issue price. As at 10.1 am the shares were trading at Rs 699.25, down by 2 per cent.Company had fixed the price band of Rs 705 to 710 per share for the offering.The company received a good response from the anchor and retail investors.
Company follows the “Business-To-IT” business model. L&T has global presence across the world which includes North America, Europe, Middle East, Asia, Australia and APAC region. Revenue contribution by North America, Europe, Asia Pacific, India and RoW (round the world) is 69, 17.4, 2, 5.8 and 5.8 per cent respectively in FY16. In Euro zone, revenue share from United Kingdom is 2 per cent, so company is less exposed to currency fluctuation risk after Brexit. Major business is from USA, so strong dollar will eventually benefit company.