L&T Technology Services: Run up to the IPO

(This page tries to consolidate opinion and recommendation of brokers, Analysts, Business New papers etc on the L&T Technology Services Ltd. IPO and shall be updated continuously till the closure of IPO)
Related Posts :  L&T Technology Services: First Look
Brokerage Views / Analysts / Business Newspapers

Subscription: L&T Technology Services Ltd. IPO  ( x times)
QIB NII Retail Total
Day 3  5.01 1.03  1.75  2.53
Day 2 1.1 0.03 0.77 0.71
Day 1 0.29 0.02 0.19 0.18

ICICIDirect : “LTS is one of the leading players in the growing ER&D space. However, the stock is available at 15.5x FY18E EPS, which is at a premium to other IT players who has presence in ER&D space such as HCL Tech (12.3x FY18E EPS) and Cyient Technologies (11.9x FY18E EPS). Hence, we believe current valuations leaves limited upside. We recommend that investors AVOID the issue.”

ET Intelligence Group : “Given such a high asking valuation and subdued market sentiment for technology stocks, long-term investors may wait for the secondary market buy instead of participating in the initial offer”

IIFL(India Infoline) : “Limited room for listing gains.  while LTTS deserves better valuations than its peers, the near-perfect IPO pricing leaves limited room for listing gains. “Long-term investors can hope for decent returns.”

IndiaNivesh Research: ” IPO has been priced at relatively rich valuations compared with the company’s listed global peers such as Alten, Harman Technologies and QuEST Global, which are trading in the 15-17 range of PE multiples.”

SPA Securities: is positive on the prospects of the company, given its diverse presence across business verticals, focus on innovation, established relationships with clients, strong clientele and parentage and brand equity of the promoter. The IPO is favourably priced.

Religare Securities:  has no recommendation on the IPO but feels L&T Technology Services Ltd. has Robust return ratios and margins and Considering healthy topline growth, robust return ratios and margins and a strong balance sheet, the IPO is reasonably placed”

Rudra Shares: Against peers FY2016 RoE’s in the range of 13.5% (Geometric)-40.1% (Tata Elexsi). L&T Tech Services has  38%+ RoE levels in FY2016 & trades  21.0x FY2016 EPS at upper-end of issue price band. On considering strong growth potential, L&T Tech Services stock has the potential to trade at premium to the peers. Recommend “SUBSCRIBE”.

Free Press Journal : “Last IPO from the group failed to live up to confidence post listing. Long term investors may consider investment in this issue as the company is one among the few in the world providing technology solutions.”

Ajcon Global: Subscribe to L&T Technology Services IPO for Long Term ;” With due consideration to factors like a) under penetrated corporate ER&D market, b) leading global pure – play ER& D services Company, c) niche business model with very few players in India, d) well diversified player with multi – vertical industry expertise and long standing customer relationships, e) focused on driving innovation through in – house R&D, IP and strategic alliances, f) strong L&T parentage and long history of engineering expertise, g) marquee global clients, h) no Brexit impact as major operations in North America, i) robust ROE of 38.85%, we recommend to SUBSCRIBE the issue for long term

Angel Broking :  is bullish on the IPO. It feels that over the next few years, top 100 ER&D spending is expected to grow in to a large market opportunity for LTTS.

Capital Market : 49/100. Implies a good rating. Point  to remember is that the magazine had given a rating of 48/100 to L&T Infotech  IPO also. Hence it is purely from long term point of view.

KR Choksey: “Subscribe for long term : L&T Technology Services as a long term story and advise investors to SUBSCRIBE the IPO of the company. We are positive on company due to strong parentage, market growth opportunities, market penetration opportunities and likely higher share of new technologies going forward which will improve margins and drive future growth for the company. “

Philips Capital: “Attractive business model at expensive valuations. Avoid as growth of Indian IT Services companies to be under pressure over the next few years “

SMC : Suitable  for Long Term Investors only

Sptulsian.com – “Can give this ipo a miss”. Reasons  “ Poor show of L&T Infotech, Stiff price, Negative sentiments for IT sector in general.

Yogesh Nagaonkar, VP, institutional equities at Bonanza Portfolio: “Do  not recommend the stock to investors. If you look at both L&T Infotech and this company, they are priced quite high. I doubt if the stock will touch the offer price. There could also be questions on the project execution capability front. Though L&T Technology deals with a niche set of products and services, the company’s peers Tata Elxsi and Cyient are both relatively older players”

Kotak, Motilal Oswal, Angel views on LTTSL (L&T Technology Services Ltd) IPO without any specific recommendation  Brokerage views of Kotak, Motilal Oswal & Angel Broking on IPO

Anchor Investors Allotment : Allocation of 3,120,000 Equity Shares @Rs. 860 per Equity Share

Sr. No. Name of the Anchor Investor No. of Equity shares alloted % of Anchor investor Bid Price
1 SUNDARAM MUTUAL FUND 2,90,576 9.31 860
2 DSP BLACKROCK FOCUS 25 FUND 2,21,008 7.08 860
3 FIL INVESTMENTS (MAURITIUS) Ltd 2,09,296 6.71 860
4 BLACKROCK INDIA EQUITIES (Mauritius)  Ltd 2,09,296 6.71 860
5 PARVEST EQUITY WORLD emerging 2,09,296 6.71 860
6 JP MORGAN FUNDS 1,51,152 4.84 860
7 JP MORGAN INDIA SMALLER companies fund 58,144 1.86 860
9 VANGUARD EMERGING MARKETS Select stock fund 73,646 2.36 860
11 HDFC TRUSTEE COMPANY Ltd 2,21,008 7.08 860
12 ICICI PRUDENTIAL LIFE Insurance co. 2,17,808 6.98 860
13 CANARA ROBECO MUTUAL FUND 2,21,008 7.08 860
14 TATA MUTUAL Fund 1,45,344 4.66 860
15 Integrated Core Sretegies PTE  Ltd 83,248 2.67 8
16 Indus India Fund  (MAURITIUS) Ltd 83,200 2.67 860
17 COPTHALL MAURITIUS Investment Ltd 2,176 7.83 860
18 MACQUIE EMERging Markets RTS 58,192 1.87 860
19 MORGAN STANLEY MAURITIUS co. Ltd 1,60,000 5.13 860
Total 28,78,000 100


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