Though L&T InfoTech IPO was subscribed heavily, there were always doubts persisting about the price it will command on Listing due to uncertain and hazy outlook for the Indian IT sector. Little doubt applying in L&T InfoTech IPO which even though not priced exorbitantly nevertheless involved this element of risk.
Analysts had estimated poor results from IT bigwigs in Q1 FY 17 results session and sentiments had turned cautious ever since Infosys gave a profit warning.
In the quarterly results season Q1 FY 17 , while the first major result IT major TCS performance slightly better than market consensus estimates, it was the results by Infosys the following day that turned the sentiment highly negative. Infosys stock ended 8.8% down at Rs.1072.25 after posting weak numbers in Q1 FY17.The consolidated net profit of Infosys dropped 4.4% Results by two other IT companies NIIT technologies and Mastek on 15/7/16 (Friday) were also subdued.
The other TOP IT firm Wipro will announce its financial results for Q1 FY17 on Tuesday, July 19.
On account of these not entirely unexpected developments, L&T InfoTech IPO listing may be heavily affected and it may not give any listing gain which could lead to big selling pressure on the stock.
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.