L&T Infotech surges 7% on strong response for OFS

Shares of Larsen & Toubro (L&T) Infotech surged 7% to Rs 1,888 on the BSE in early morning trade on Tuesday after the company’s offer for sale (OFS) on Monday got a strong response from the institutional investors. The stock was trading close to its 52-week high of Rs 1,911 touched on August 21, 2018, on the BSE in intra-day trade.

The share sale saw bids for 29.8 million shares as against 9.5 million on offer. The clearing price of Rs 1,751 fixed for non-retail bidding in L&T Infotech, the BSE data shows.

Another 1.05 million shares meant for retail investors will be auctioned on Tuesday.

In a regulatory filing L&T Infotech on Friday said its promoter Larsen & Toubro Ltd (L&T) proposes to sell its stake in the company.

L&T proposed to sell up to 5.9 million equity shares representing 3.41% of the total paid up equity share capital of L&T Infotech, with an oversubscription of 4.63 million equity shares representing 2.67% through stock market route on Monday and Tuesday. The floor price of the offer will be Rs 1,700 per equity share of the company.

At 10:54 am; L&T Infotech was trading 5.4% higher at Rs 1,867 on the BSE in an otherwise subdued market. The benchmark S&P BSE Sensex was trading 0.41% lower at 38,271 points. The trading volumes on the counter jumped more than six-fold with a combined 2.36 million equity shares changed hands on the BSE and NSE so far.