L&T Technology Services Ltd will open its initial public offer of up to 10.4 lakh equity shares on Monday.
The shares will be sold by the parent Larsen & Toubro, the company said.
Each share of the company, which provides technical design services, will carry a face value of Rs 2 and will be offered at between Rs. 850 to Rs. 860. The shares sold would constitute 10.2% of the post-offer paid-up equity share capital of the company.
L&T Technology Services delivers a range of technologies, services & solutions across transportation, industrial products, telecom and hi-tech, process industry, and medical devices. It has more than 8,000 engineers from nine nationalities serving over 200 customers, including more than 50 Fortune 500 customers, according to its website.
The Offer will close on Thursday, September 15, 2016.
Bids can be made for a minimum of 16 Equity Shares and in multiples of 16.
The Equity Shares offered through the Offer are proposed to be listed on National Stock Exchange of India Limited (“NSE”) and BSE Limited (“BSE”).
The managers to the offer are Kotak Mahindra Capital Company Limited, DSP Merrill Lynch Limited, JM Financial Institutional Securities Limited and SBI Capital Markets Limited.
The Offer is being made in accordance with Regulation 26(1) of the SEBI Regulations, through the Book Building Process wherein 50.0% of the Offer shall be allocated on a proportionate basis to Qualified Institutional Buyers (“QIBs”), provided that the Company and the Selling Shareholder may allocate up to 60.0% of the QIB Portion to Anchor Investors on a discretionary basis, out of which one-third shall be reserved for domestic Mutual Funds only, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price, in accordance with the SEBI Regulations.
Post allocation to Anchor Investors, the QIB Portion will be reduced by such number of Equity Shares.
5.0% of the QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Offer Price.
Further, not less than 15.0% of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35.0% of the Offer shall be available for allocation to Retail Individual Bidders in accordance with the SEBI Regulations, subject to valid Bids being received at or above the Offer Price, it added.