Mumbai: L&T Infotech Ltd’s 1,234 crore initial public offering (IPO) was subscribed more than three times on the second day, joining recent successes in the primary market such as Quess Corp Ltd and Mahanagar Gas Ltd.

The unit of Larsen and Toubro Ltd (L&T) saw its IPO subscribed 3.58 times at 5pm on Tuesday, data from NSE showed. The issue closes Wednesday.

L&T Infotech has fixed a price band of 705-710 per share for the offering, its filing stated. The company is offering a discount of 10 per share for retail investors.

In the grey market, there was a premium of 75-78 per share being quoted for L&T Infotech, but the activity was lackluster.

“The interest in grey market for L&T Infotech is not very high, as traders suffered in the Quess Corp IPO. The Quess issue was heavily oversubscribed, and that brought down allocations," said one dealer, requesting anonymity.

Another dealer said that L&T Infotech shares were earlier quoted at a premium of 130 per share, but later the premium fell to 70 per share.

The IPO is a pure offer for sale with L&T looking to sell about 10.3% of its stake in the firm.

Brokerage firms, have largely been upbeat on the prospects of L&T Infotech IPO, as the pricing leaves enough money on the table for investors.

In a note on 11 July, Emkay Global Financial Services Ltd said that the IPO pricing at price-to-earnings ratio (P/E) of around 14 times and 12 times, respectively for fiscal years 2017 and 2018, leave scope for modest listing gains with valuations at discount to mid-tier companies like Mindtree Ltd and Hexaware Technologies Ltd.

However, Emkay Global Financial Services noted that the company did go through difficult times in recent years.

“L& T Infotech is a ‘me too’ mid-tier IT Services company in our view," Emkay Global Financial Services said in the note.

“The company seems to have struggled through recent years on account of (1) significant leadership churn and missing several strategic inorganic growth opportunities," the brokerage firm added.