To Subscribe or Not to L&T InfoTech IPO : investors face some Dilemma even though the issue has been priced reasonably.
While few will deny that L&T InfoTech IPO is not priced aggressively , doubts still lurk in mind of investors given the uncertain and hazy outlook for IT industry and the fact that L&T InfoTech has not much to distinguish itself from the crowd of other IT players and has shown average revenue growth.
The poor record of group companies like L&T finance which for extended periods failed to command good valuations is also lurking in the mind of investors. There are also concerns that a portion of profit in last financial year is on account of forex gains.
L& InfoTech despite strong parentage seems to suffer from credibility issues and while purely from a value point, its financial parameter demand better price, aspersions on its growth and slow growth or lack of focus may turn away long term investors.
It appears that L&T InfoTech may not be able to drum up the kind of euphoria seen for Mahanagar Gas & Quess corporation IPOs and investors should carefully keep track of the ongoing developments and QIB response to the issue.
Disclaimer: I may or may not to subscribe to this IPO and hence my opinion could be biased. Also I am not a research analyst and above exercise is purely academic or for my own interest. Please weigh in all factors before investing.