1 min read.Updated: 12 Sep 2016, 07:00 PM ISTAnkit Doshi
The institutional investor category was subscribed 28%, while the non-institutional category comprising high net-worth individuals was subscribed 1.5% or 0.015 times
The initial share sale of L&T Technology Services Ltd, excluding the anchor allotment, was subscribed 17.8% on the first day of the three-day offering.
The share sale, through which Larsen & Toubro Ltd (L&T), is looking to raise about Rs890 crore, will end on 15 September.
As of 5.15pm on Monday, the IPO had received applications for 1.29 million shares, against 7.28 million on offer, stock exchange data showed.
The institutional investor category was subscribed 28%, while the non-institutional category comprising high-net-worth individuals was subscribed 1.5%, or 0.015 times.
Retail investors, whose investments cannot exceed Rs2 lakh per individual, subscribed to 19% of the 3.64 million shares on offer, data showed.
On Friday, L&T Technology Services raised Rs268.32 crore by selling shares to anchor investors. The firm sold 3.12 million shares to 15 anchor investors at Rs860 apiece, the upper limit of the Rs850-860 price band for the issue.
Institutions that participated in the anchor book include Sundaram Mutual Fund, DSP Blackrock Mutual Fund, FIL Investments (Mauritius) Ltd, Blackrock India Equities (Mauritius) Ltd, JP Morgan Funds, Oaktree Emerging Markets Mauritius Holdings Ltd and Vanguard Emerging Markets Select Stock Fund.
The anchor book is the portion of an IPO that bankers allot to institutional investors on a discretionary basis. Anchor book subscription opens a day before the IPO launch and is an indicator of institutional investor interest.
L&T, India’s largest engineering and construction company, is selling a 10.2% stake in its engineering, technology research and development unit at a valuation of around Rs8,800 crore.
This is the second IPO from the L&T stable this year.
In July, its IT unit, L&T Infotech Ltd, saw its Rs1,243 crore IPO subscribed 11.69 times. The issue was priced at the upper end of the price band of Rs705-710 per share.
As part of a business restructuring and consolidation exercise, L&T transferred the product engineering services of L&T Infotech and its integrated engineering services to form L&T Technology Services.
In fiscal years 2013 and 2014, revenue from integrated engineering business as a part of L&T was Rs1,224.8 crore and Rs1,628.1 crore, respectively, after certain adjustments. Further, in fiscal 2013 and the nine months ended 31 December 2013, revenue from product engineering business as part of L&T Infotech was Rs420.3 crore and Rs374.4 crore, respectively, after certain adjustments.
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