Pedestrians walk past an electronic ticker board displaying stock figures at the Bombay Stock Exchange (BSE) in Mumbai, India (Photographer: Dhiraj Singh/Bloomberg)

L&T Technology Services IPO Subscribed 2.5 Times On Final Day

The initial public offer of L&T Technology Services Ltd., an arm of engineering giant Larsen and Toubro Ltd. (L&T), got subscribed 2.5 times as of 6:30 pm on Thursday – the final day of the offer.

The Rs 900-crore IPO received bids for 1.80 crore shares against the total issue size of 72.80 lakh. Retail investors bid for 1.65 times of the quota limit of 36.40 lakh shares, data compiled from NSE and BSE websites showed

The quota for qualified institutional buyers (QIBs) was subscribed 5.01 times. Non-institutional investors (NIIs) bid for 1.03 times their quota limit.

This is the second company from the L&T Group to hit the market with an IPO since July, when L&T Infotech Ltd. had launched its public offer.

L&T Technology Services had last week raised over Rs 268 crore from anchor investors. The issue comprises an offer for sale of up to 10,400,000 shares by its promoter L&T.

The price band for the IPO was fixed at Rs 850-860. The firm, which provides innovative engineering as well as research and development services across sectors, has revenues of nearly $500 million.

L&T Technology Services also offers engineering analytics, Internet of Things and automation solutions. The erstwhile L&T Integrated Engineering Services, carved out of parent L&T in 2010, was renamed as L&T Technology Services in 2012. Later, certain businesses of L&T Infotech, including telecom and high-technology product engineering services businesses, were transferred to L&T Technology Services.

Kotak Mahindra Capital Company, DSP Merrill Lynch, JM Financial Institutional Securities and SBI Capital Markets are the merchant bankers to the issue.

The shares are proposed to be listed on both the Bombay Stock Exchange and the National Stock Exchange.