Shares of L&T Infotech Ltd fell 6.11% on debut even though the issue was subscribed more than 11 times last week. This is the first issue in nearly four months to open at a discount.
L&T Infotech shares opened at Rs.666.60 on the BSE on Thursday compared to the issue price of Rs.710 per share. At 12.22 pm, they were down 0.63% at Rs.705.55 on the BSE, while benchmark 30-share Sensex traded 0.29% lower at 27,835.12 points. L&T Infotech shares touched a high of Rs.699, and a low of Rs.666.
The last primary issue to list at a discount was HealthCare Global Enterprises Ltd (HCG), which runs cancer care centres. The stock fell more than 20% compared to its issue price when it started trading on 30 March.
The IT unit of top engineering and construction firm Larsen and Toubro Ltd (L&T) saw its Rs.1,243 crore initial public offer (IPO) getting subscribed 11.69 times. The issue was priced at the upper end of the price band of Rs.705-710 per share. The company had offered a discount of Rs.10 per share for retail investors. The IPO was a pure offer for sale with L&T selling about 10.3% of its stake in the firm.
The disappointing listing may be partly because of weak earnings reported by large IT services companies.