L&T Finance Holdings’ Rs1,750 crore IPO likely this month

The objective of the issue are to augment the capital base of L&T Finance and L&T Infra to meet the capital requirements arising out of expected growth in their assets

The Rs1,750-crore initial share sale offer of L&T Finance Holdings, the financial services arm of Larsen & Toubro, is likely to hit the capital market this month.

"The company has received FIPB (Foreign Investment Promotion Board) approval for coming out with a Rs400-crore pre-IPO placement. Most likely, the initial public offer (IPO) will hit the market this month," sources said.

Sources said the company would soon file the final papers (Red Herring Prospectus) for the IPO and merchant bankers are receiving good response from investors for the pre-IPO placement.

Larsen & Toubro Finance Holdings Ltd had earlier this year filed the draft papers with market regulator Securities and Exchange Board of India (SEBI) for raising Rs1,750 crore through an IPO.

Citigroup, JM Financial and HSBC are acting as the book running lead managers for the IPO, while Credit Suisse and Barclays are acting as co-lead managers.

As per the details available with the draft red herring prospectus (DRHP) filed with the SEBI, the company may consider a pre-IPO placement of 6 crore equity shares to one or more investors, for up to Rs400 crore.

The objective of the issue are to augment the capital base of L&T Finance and L&T Infra to meet the capital requirements arising out of expected growth in their assets, primarily the loan portfolio, and for other general corporate purposes, it said in the draft prospectus.

Last year in September, L&T Finance Holding had filed the draft paper with SEBI for a Rs1,500 crore IPO, but in April 2011 approached the market regulator with revised draft prospectus for raising Rs1,750 crore.

L&T Finance Holdings Ltd, earlier known as L&T Capital Holdings Ltd, is the holding company for L&T Finance (that operates mutual fund business) and L&T Infra.

L&T Finance is a financial holding company offering a diverse range of financial products and services across the corporate, retail and infrastructure finance sectors, as well as mutual fund products and investment management services, through its direct and indirect wholly-owned subsidiaries.

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COMMENTS

Jitendra

6 years ago

i have lot of faith in L & T finance
with interest rates rising this can one good investment

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