L&T Infotech Shares Make Weak Debut, Slump 6%

L&T Infotech shares made a weak debut in stock markets on Thursday, falling as much as 6.2 per cent to Rs 666 against their issue price of Rs 710. L&T Infotech, part of the diversified Larsen & Toubro group, joined the list of about a dozen other companies that have come out with their IPOs so far this year.

However, L&T Infotech bucked the trend of stellar listing-day gains seen in case of companies such as Dr Lal PathLabs, Alkem Labs, TeamLease Services, Thyrocare Tech and more recently Mahanagar Gas.

L&T Infotech is a midcap IT company, in the league of Tech Mahindra, Mindtree and Hexaware. Analysts attributed the weak listing of L&T Infotech shares to the current cautious sentiments around the IT sector.

Frontline IT companies such as TCS, Infosys and Wipro have missed Q1 earnings estimates, leading to a selloff in IT stocks. Midcap companies such as Mindtree have also reported weak numbers in the June quarter.

IT companies have reported sluggish revenue growth on account of global headwinds. Concerns around Britain's decision to exit the European Union have also hit IT stocks.

L&T Infotech had raised Rs 1,243-crore in its IPO. The company's IPO had attracted more than one million applications, the highest for any share sale offer in at least five years.

L&T Infotech shares traded 2 per cent lower at Rs 695.60 as of 10.15 a.m., underperforming the Nifty traded 0.1 per cent lower.

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