|Subscription: L&T Technology Services Ltd. IPO ( x times)|
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|
|8||OAKTREE EMERGING MARKETS MAURITIUS HOLDINGS LIMITED||72,998||2.34||860|
|9||VANGUARD EMERGING MARKETS Select stock fund||73,646||2.36||860|
|10||NATIONAL PENSION SERVICE MANAGED BY OAKTREE CAPITA Management LP||1,90,604||6.11||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|