L&T InfoTech (LTI) is one of India's global IT services and solutions companies. In 2015, NASSCOM ranked the company as the sixth largest Indian IT services company in terms of export revenues. The company is a subsidiary of engineering and construction giant Larsen and Toubro (L&T). Angel Broking has recommended 'Subscribe' to IPO of L&T InfoTech.

L&T holds close to 95% in LTI and is launching an IPO to offload 10.3% of its stake. Its clients comprise some of the world's largest and well-known organisations, including 49 of the Fortune Global 500 companies.

Commenting on the investment rationale, the stock broker said, ''LTI has reported a strong CAGR of 20.1% and 23.1% on the revenue and net profit fronts respectively over FY2011-2015. At Rs 710, which is the upper end of the offer price band, the company is available at ~13x its FY2016E earnings, which is at a slight discount to its mid-cap peers trading at an average PE of ~15x FY2016E earnings.

Plus, assuming that the company maintains its historical average rate of dividend pay-outs, it would translate into a yield of 4-5% for the investor. Apart from the favourable prospects of the company, we also foresee decent gains on listing. Thus, we recommend a Subscribe to the issue.''

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