L&T Infotech IPO at a glance

Issue Highlights

Issue Period	11/7/16-13/7/16
Price Band (Rs.)	705-710
Issue Size(shares)	1,75,00,000
Issue Size (Rs. crore)	1400
Issue Type	100% Book built
Face Value (Rs.)	1
Listing	BSE,NSE
Industry	IT
Registrar	Link Intime India Ltd.
Minimum Bid Quantity	20 shares
Maximum Retail Subscription	Rs. 1,98,800 (14 lots)
BRLM	Citygroup Global, Kotak, ICICI Sec
Retail Discount	Rs. 10

Issue Details

Offer for Sale: 1,75,00,000 equity shares

 Fresh Issue: Nil

 Equity Shares Outstanding Prior to the Issue: 169,843,538

 Equity Shares Outstanding After the Issue: 169,843,538

QIB Portion:  up to 87,50,000 equity shares

NII: at least 26,50,000 equity shares

RII: at least 61,50,000

Objects of the Issue

This issue being an offer for sale no proceeds shall go towards the company . This issue shall fetch listing benefits to the company .

Risks & Threats

1.       Being an IT company with around 95 % of its revenue coming from abroad, stronger rupee against foreign currencies especially dollar shall not augur good for this company

2.       Around 70 %  and 18 % of the revenue comes from North America and Europe respectively and thus company’s profitability depends on the well being of these economies

3.       BFSI and Insurance sector account for 26 % and 21 % of the total revenue and any slowdown in this sector shall not augur good for this company

4.       Top ten clients account for almost half of the revenue and thus company can’t afford even a few parting their ways out

Financial Profile #

Parameter	FY 15
PEG (Profit, trailing 4 years)	.55
Net Profit Margin (%)	15.8%
Return on Equity (%)	50
Total Liability to Net worth	.74
Price to Book Value	6.47
Operating Cash to Net Profit	.8
TIE (Times Interest Earned)	121
EV/EBITDA	10.5
Profit CAGR (%)	23.3

# using upper end of the price-band

Comparison with the Peers #

	PEG	NPM (%)	ROE(%)	EV/EBITDA
L&T Infotech	.55	15.8	50	10.5
Infosys	1.18	29.24	27.6	13.3
TCS	.99	26.64	38.87	16

# moneycontrol data