Wednesday, July 13, 2016

L&T Infotech IPO subscribed nearly four times Edit


Larsen & Toubro (L&T)'s 10 per cent stake sale in its IT services arm L&T Infotech has been lapped up by investors. The company’s Rs 1,236-crore initial public offering (IPO) has so far seen four times more demand than shares on offer. The 12.25-million share offering has attracted bids of 43 million bids from investors, data provided by exchanges showed.
Bulk of the bids have come from qualified institutional buyers (QIBs) and retail investors. TheQIB segment has been subscribed five times, while the retail category is subscribed nearly four times. The high networth individual (HNI) segment has so far garnered 60 per cent subscription.
The IPO has so far seen around 500,000 applications from retail investors. The issue closes on Wednesday. Good post-listing performances of almost all recent IPOs have buoyed investor sentiment towards the primary market.
Typically, most of the bids in an IPO come on the last day, but investors, particularly retail and institutions, have been subscribing to IPOs on the first day itself. Previous, two IPOs of Quess Corporation and Mahanagar Gas, too, had seen the shares getting lapped up in the first two days of the issue. Read more.

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