L&T Technology Services , subsidiary of engineering & construction giant Larsen and Toubro has made its stock debut at Rs 920 per share, up 7 percent over its issue price of Rs 860. The Rs 894-crore issue,
which opened for subscription during September 12-15, was oversubscribed 2.52 times. It is the second company from the L&T Group to hit the capital market with an IPO since July, after L&T Infotech that listed on July 21. L&T Technology Services through its IPO offered to sell 10.4 million shares. The offer was bifurcated into QIB portion of 5.2 million shares, non institutional portion of 1.56 million shares and retail portion of 3.64 million shares. The proceeds from the IPO went to the promoter shareholders. The promoter was looking to dilute shareholding in the company from current 100 percent to 89.8 percent. In FY16 the company reported USD revenue growth of 9.4 percent as it consciously exited from low margin tail accounts. While this resulted in loss of revenues it increased the margins by 180 bps YoY to 17 percent. Q1FY17 has seen EBITDA margin of 18.6 percent. Of the total, 50.3 percent of revenue in FY16 was derived from the three segments of industrial products, process industry and medical devices. L&T Group Chairman AM Naik the company is targeting 15-percent increase in revenue to USD 525 million in the current fiscal and USD 1 billion over the next three to four years through inorganic growth. He said the company wants to double revenue to USD 1 billion over the next three-four years, and will be looking at acquisitions with revenue of USD 150-200 million to achieve the target. It provides Engineering and R&D sector (ER&D)services, which is defined as the set of services provided to manufacturing, technology and process engineering companies, to help them develop and build products, processes and infrastructure required to deliver products and services to their end customers. It operates in five industry segments (transportation, industrial products, telecom and hi-tech, process industry and medical devices.
0 comments:
Post a Comment