L&T Finance Holdings’ IPO likely to hit capital market within two weeks

07 Jul 2011

Larsen & Toubro’s (L&T) financial services unit - L&T Finance Holdings’ initial public offer (IPO) is likely to hit the capital market on July 19. The existing L&T shareholders may get 7.14 percent reservation in the IPO.

Recently, Credit rating agency, CARE had assigned ‘IPO Grade 5’ to the proposed IPO of L&T Finance Holdings. IPO Grade 5 indicates ‘Strong Fundamentals’. The grading reflects strong consolidated financial position, comfortable liquidity position with strong resource raising ability and good asset quality of its subsidiaries.

L&T Finance Holdings - had filed the draft red hearing prospectus (DRHP) with market regulator SEBI for raising Rs 1,750 crore from the initial public offer (IPO). Earlier in September 2010, it had planned for Rs 1,500 crore IPO. But now the company has increased the size of the IPO from Rs 1500 crore to Rs 1,750 crore.

The company had received all necessary approvals from the government. The IPO proceeds will used 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. JM Financial, Citigroup and HSBC are among the book running lead manager to the issue.

L&T Finance Holding, a leading non-banking finance firm. Mumbai headquartered, 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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