L&T Infotech stages tepid debut, ends 5% lower to its issue price
Muted quarterly results from major IT services firm such as Infosys, Wipro and MindTree are believed to have played spoilsport for the L&T Infotech's damp-squib listing.
BT Online New Delhi Last Updated: July 21, 2016 | 16:17 IST
The sixth largest IT exporter L&T Infotech's debut on Dalal Street turned out to be a damp-squib for investors as the stock listed at over 6 per cent discount to its issue price of Rs 710 per piece on the BSE and NSE.
On BSE, the stock listed at Rs 666.60, down 6.11 per cent to its issue price, while on NSE the scrip staged a debut at Rs 667, down 6.06 per cent.
The stock settled the day at Rs 697.65, down 4.66 per cent from its IPO price, as its debut was marred by concerns about the outlook for the software services exports sector after disappointing earnings from major IT services firm such as Infosys, Wipro and MindTree this month.
The company's Rs 1,243-crore IPO had attracted more than one million applications, the highest for any share sale offer in at least five years.
From 2011 till date, L&T Infotech is the first one to attract million applications.
L&T Infotech had fixed a price band of Rs 705-710 per share for the offering.
In the financial year 2015-16, L&T Infotech's revenue from operations and other income stood at Rs 6,143.02 crore, while it clocked a profit after tax of Rs 922.17 crore during the same period.
The company, part of the diversified Larsen & Toubro group, has joined the list of about a dozen other companies that have come out with their IPOs so far this year.