L&T Technology Services Ltd IPO Message Board (Page 24)

Lt koshtak 325. Premium 72.

I was going through the RHP, read something and got a query. On june 3, 2016, L&T alloted 2.67 crore equity shares to themselves at 281 a piece and now offering 1.04 crore equity shares to public at 860 a piece. So, according to them, the value of LTT shares increased from 281 to 860 in few months. When they were planning for an IPO, was it a honest move to allot themselves 2.67 crore shares at such a low price of 281? Am I wrong here somewhere?

You r not right.Most of the companies issue huge bonus shares, take out reserve by giving huge dividend to themselves before ipo.Interglobe aviation is a classic case which made its reserves negative and gave a huge bonus.In that comparison, its fair

Naik ko koi sharam nahi hai..

Apply and sell in gray market. It is as simple as that..

GMP still continues today application rate is 400.

septa sir, l&t techno me subscrib karna chahiya ya nahi for listing gain only
thanks for advance

IRB InvIT Fund, an infrastructure investment trust, has filed draft red herring prospectus with SEBI for Rs 4,300 crore initial public offering.

Hi all,
There are three IPO''s coming in the next couple of weeks and was little bit confused about Funds allocation.
If we apply for L&T and GNA Axels, if not allocated will the funds get un blocked by 21st so that I can apply for ICICI Pru IPO

What will be the probable date of allotment for
a) L&T and
b) G N A Axel

23rd & 24th sep.

No profit on the table for the investor only Chance of a discounted listing and subsequent loss.

Can anyone know where and how to sale application in grey market. I will apply and sale this ipo as I don''t want to take risk for this IPO

WARNING - IT shares are coming down and major agency downgraded TCS stocks. Not applying for this IPO and will wait to buy at lower levels after listing. All d best to all who are applying.

What is EPS OF LAST 3 MONTHS ENDED 30 JUNE 2016 OF L ANDT TECH IPO ? PLS POST

L&T Technology Services

About Company: L&T Technology Services (LTT) is coming with public issue of 1.04 cr, which is 10.2% of post offer paid up capital. LTT was incorporated in 2012 only as PES (product engineering services) business by transferring some business from L&T and L&T Info to it. Its top 10 customers accounted for 38% business in Fy16 and 36.2% business in Q1FY2016. Around 80% of LTT’s revenue comes from US and Europe. LTT operates mainly in 5 verticals i.e. transportation, industrial products, telecom & hitech, medical devices and a new vertical, IOT (internet of things) which include smart products, smart services, digital technologies etc. LTT operates from its 12 global delivery centres in india and overseas and its 32 labs.

Financials (consolidated): LTT’s revenue grew by 19% in FY16 from Rs.2643 cr to Rs.3142 cr on consolidated basis. LTT’s PAT grew by 34% in fY16 from Rs.311 cr to Rs.416 cr. LTT has networth of Rs.1092 cr as on March 31st 2016 and Rs.1126 cr as on June 30th 2016. LTT’s NAV is 110 for 3 months of FY17 on consolidated basis. Its diluted EPS for FY16 was 32.1 which gives a PE of 26.8 on issue price of 860. Its diluted EPS for 3 months ended 30th June 2016 is 11.02. Now if I annualise this with 25% growth in the earnings than PE for FY17 comes at 21.4. LTT’s RONW is 38.8% for FY16 which is good. LTT’s operating profit margin for FY16 was 17% and for 3 months ended 30th june 2016 it has operating profit margin of 22.3%, which is again good. Similarly, its EV/EBIDTA is 14-14.5 times, EV/sales is 2.7 times & P/B is around 7.8 times.
Now if we compare LTT with Tata elsxi which has EPS for FY16 at 49 resulting in PE of 32. Tata Elsxi has NAV of 124, P/B of 12.5 times, RONW of 40%, EV/EBIDTA of 20 times and EV/Sales of 4.6 times. So comparing all these parameters with LTT, LTT is available at discount.
Now if we compare LTT with Cyient whose Operating margin is 13% (less than L&T tech), RONW is 17 (approx. half of LTT), EPS of 30 for FY16 and PE of 16.5. Hence LTT should command premium compared to Cyient.
Similarly, Altran technology (global E&RD player) trades at PE of 18.4 for FY17 and RONW of 16% for FY17. Hence LTT commands premium here too.
Now if I take 25% growth in LTT’s earnings for FY17 than at EPS of 40.1, PE comes 21.4. So now if I give a 23 PE multiple price comes to 920. So cosidering all this we can expect a premium of 7-8%. With 25 PE FY17 it can touch 1000. On the lower side it can touch 830.

Conclusion : Investors with medium to long term should go for it.

excellant work

@SRK thanks, it''s very informative. I too got encouraged by your post and did some number crunching myself :)
Comparing LTT and TataElxsi, the OPM of TE is ~23%, far better than 17% for LTT. The P/E is 26.79 for LTT and 30.87 (CMP of 1535). RONW is also better. today TE hit 52-week low of 1527. If it comes below 1500, it''s P/E will be under 30. TE is debt free company while LTT has D/E ratio of .18 (as RHP). TE has a longer history too with a renowned TATA brand attached to it. As such, won''t TATA Elxsi a better bet than LTT if TE is available at any value under 1500? Please share your valuable thoughts.

NOT MUCH GAIN LEFT

Intelligence is like an underwear. It is important to have it, but not necessary that you show it off......member kindly stop chest beating once in awhile i can understand but always is plain vanilla show off

Is there any underwear IPO coming?

I would opt for Naidu Hall and Ramraj if they ever come. FMCG you know, within one month, everyone will buy new ones

Hello septa sir
Plz share ur precious views regularly on this site and kindly suggest about
apply in upcoming IPO

PL TELL ME GMP & KOSTAK OF L&T TECHNOLOGY SER.LTD

In Ahmedabad no one ready to bu application in Gray Market.

Seaways Shipping & Logistics has also got Sebi’s nod to float an IPO.The company got the regulator approval on August 31.
Seaways Shipping & Logistics’ IPO comprises fresh issue of shares worth Rs 80 crore and an offer-for sale ofup to 64,45,224 equity scrips by the existing shareholders including IDFC Private Equity.
The company has reserved up to four lakh shares for employees in the public issue. The proceed of the fresh issue would be utilised for capital expenditure, repayment of loans and for other general corporate purposes. ICICI Securities, IDFC Bank and Karvy Investor Services will manage the IPO

Extremely overpriced since issue price is Rs.860 per share. Fair Value is Rs.281 per share of Face value Rs.2 on account of the following reason:
1. Read RHP Page no.222, para starts with "Pursuant to the order dated 1 April 2016 of the High Court of Judicature at Bombay, sanctioning the scheme of arrangement for reduction in the face value of the equity shares of the Company, the Company reduced the face value of its equity shares.............."
2. Book Value as on date is Rs.110.81 and since this company is incorporated on June 14, 2012 which means it is less than 5 years in the market, book value cannot be ignored"

Conclusion: Do not subscribe to this IPO, since it is extremely overpriced. However, if it still gives listing gains, it will only be because of investors subscribing without any knowledge.

Bhai sell in Gray market if you want to earn. I have sold all my groups 21 application.

Dear kbjain how did you calculate Fair Value is Rs.281 per share .

Other thing Face value is just for declaring dividend.

Yes it looks fully priced.

Particulars      For the year/period ended (in Rs. Million)
31-Mar-16      31-Mar-15      31-Mar-14      31-Mar-13
Total Assets      18,227.27      17,144.82      6,368.91      0.50
Total Revenue      29,694.04      25,856.22      1,222.00      -
Profit After Tax (PAT)      4,342.36      3,151.77      62.14      (0.03)

Varun Beverages, franchisee for soft drinks maker PepsiCo, has received markets regulator Sebi''s approval to raise over Rs 1,000 crore through an initial public offering. Besides, leading logistics service and solutions provider, Seaways Shipping & Logistics has also got Sebi''s nod to float an IPO.

Varun Beverages and Seaways Shipping & Logistics had filed their draft red herring prospectuses with the Securities and Exchange Board of India (Sebi) in June and March, respectively.

The two firms got the regulator approval on August 31, as per the latest update. The initial public offer (IPO) of Varun Beverages entails sale of up to 2.5 crore shares, including fresh issue of 1.5 crore shares and offloading of stake by the promoters.

Apart from fresh issue of 1.5 crore equity shares, there would be an offer for sale of up to 50,00,000 shares each by Varun Jaipuria and Ravi Kant Jaipuria & Sons (HUF). Sources said Varun Beverages expects to raise more than Rs 1,000 crore through the IPO.

A portion of shares in the IPO would be reserved for eligible employees not exceeding 5 percent of the post offer paid up equity share capital. The global coordinators and book running lead managers to Varun Beverages offer are Kotak Mahindra Capital Company, Axis Capital and CLSA India.

The book running lead manager is YES Securities (India) Ltd. Varun Beverages, flagship company of R K Jaipuria Group, is a leading franchisee of carbonated soft drinks and non- carbonated beverages sold under trademarks owned by PepsiCo.It produces and distributes a wide range of products including Pepsi, D7UP, Evervess Soda, Tropicana Slice and packaged drinking water under the brand Aquafina.

The company has also been granted the franchise for Ole brand of PepsiCo products in Sri Lanka, as per its website. Seaways Shipping & Logistics'' IPO comprises fresh issue of shares worth Rs 80 crore and an offer-for sale ofup to 64,45,224 equity scrips by the existing shareholders including IDFC Private Equity.

The company has reserved up to four lakh shares for employees in the public issue. The proceed of the fresh issue would be utilised for capital expenditure, repayment of loans and for other general corporate purposes. ICICI Securities, IDFC Bank and Karvy Investor Services will manage the IPO.

Varun topi pehnayega sabko

L&T WILL BE WELL LISTED BY SUPPOT TO BIG INVESTOR
BECASUE COMPANY GOODWILL IS CONTINUOUS INCREASE

Then what happens for the same groups infotech?