L&T Infotech to Enter Primary Markets on July 11 to July 13, 2016; Ten Percent Discount for Retail Investors

Larson and Turbo Infotech, which is the sixth largest Indian IT services company, will hit the primary market on July 11, 2016 and will close on July 13, 2016. A discount of 10 percent per share will be offered to retail individual bidders on the offer price. Sources indicate that this is the first major IT player to roll out its IPO in the last 10 years. 

The Initial Public Offer (IPO) will offer of up to 17,500,000 equity shares of face value of Re 1 each for cash at a price-band from Rs 705 to Rs 710 per equity share.

"LnT Infotech will not enjoy the proceeds of the issue as this will be an offer for sale, and the sale amount will go to LnT," said top company officials.

The lead bankers for the IPO are Citigroup Global Markets India, Kotak Mahindra Capital Ltd and ICICI Securities Limited. 

S N Subrahmanyan, President and Deputy Managing Director, LnT, said the company is working with 248 clients including 49 Fortune 500 clients. Close to 47% of its revenues comes from the BFSI (Banking, Financial Services and Insurance) sector.

Sanjay Jalona, CEO and MD of LnT Infotech, said they do not see any impact of Brexit. "It could be an opportunity for IT companies. Around 17% of our revenues come from Europe," he said.

Ashok Sonthalia, CFO of LnT Infotech, said the employee headcount increased from 17,627 in FY14, to 20,072 in FY16, and that its PAT CAGR is 18.2% (2014-16). The executives pointed out the huge market opportunity ahead for the company.