L&T Fin to hit markets on Wed, to mop up 1,275 cr

L&T Fin to hit markets on Wed, to mop up 1,275 cr

Mumbai: The L&T Group’s financial services subsidiary L&T Finance Holdings that controls five separate entities, Thursday announced its plans to hit the capital markets to mobilise up to 1,245 crore from the primary markets by diluting up to 17% of its stake.

“The issue, which opens on 27 July and closes on 29, will be priced in the range of 51 to 59. This is the first public issue from the house of L&T since the parent’s listing way back in 1950," L&T Finance Holdings chairman and group chief financial officer Y M Deosthalee told reporters here today.

The five subsidiaries of L&T Finance Holdings, which is a fully-owned subsidiary of the engineering major L&T, are L&T Infrastructure Company, L&T Finance, India Infrastructure Developers, L&T Investment Management and L&T Mutual Fund Trustees. The last two are the subsidiaries of L&T Finance, L&T Finance Holdings president and whole-time director N Sivaraman said.

The combined asset base of these group companies as of FY 11 stood at 18,800 crore, up from 1,2000 in FY10, Sivaraman said, adding the company had a PAT of 392 crore last fiscal, up from 262 crore in the previous fiscal.

The total issue size is of 1,575 crore, but the net issue size to the public will be only 1075 crore, as the company has already raised 330 crore through a pre-IPO placement to Capital International which has picked up a 4% stake in the company through this.

Apart from that, the company has also reserved some portion of the issue to the L&T Group employees as also to the existing L&T shareholders, both of whom will get a 2 discount to the issue price, Deosthalee said.