Tepid debut: L&T Infotech lists at 6% discount from issue price

L&T Infotech has made a debut at the exchange, falling 6 percent from its issue price of Rs 710. The stock was listed at Rs 667 per share. The much-awaited IPO had attracted more than one million applications, the highest for any share sale offer in at least five years. L&T Infotech had fixed a price band of Rs 705-710 per share for the offering.Most analysts were upbeat on the issue and recommend subscribing it on reasonable valuation. L&T Infotech is India’s seventh largest IT services firm by revenue and draws majority of its revenue from Banking, Financial Services and Insurance (BFSI, 47percent - 26.3 percent BFS, 20.7 percent insurance), followed by energy & process (12.7 percent), CPG, retail & pharma (9.3 percent), automotive and aerospace (6.8 percent), media & entertainment (6.2 percent) and hi-tech & consumer electronics (5.2 percent). Digital services accounted for 11.1 percent of revenue in FY16.L&T Infotech’s sales and profit have grown at a CAGR of 13.50 percent and 18.20 percent respectively through FY 14-16.Posted by Nasrin Sultana