L&T Finance Holdings raises Rs 330 through pre-IPO placement
07 Jul 2011
L&T Finance Holdings Ltd (LTFH), a subsidiary of India's largest engineering and construction firm Larsen & Toubro Ltd (L&T), has raised Rs330 crore through a pre-Initial Public Offering (IPO) placement with US-based private equity (PE) fund Capital International.
The company has issued six crore equity shares at Rs55 A share to the PE fund, it said in a statement.
''L&T is very happy to welcome the Capital International Private Equity Fund as a long term investor in the financial services holding company,'' L&T chief financial officer of L&T and chairman of LTFH said.
LTFH had filed a Draft Red Herring Prospectus (DRHP), or initial papers, for its proposed IPO with market regulator SEBI. The firm was planning to raise about Rs1,750 crore, of which it planned to raise Rs 400 crore through a pre-IPO placement.
Its units include L&T Infrastructure Finance Company Ltd, L&T Finance Ltd, L&T Investment Management Ltd, L&T Mutual Fund Trustee Ltd and India Infrastructure Developers Ltd.
The firm intends to use issue proceeds for repayment of inter-corporate deposit issued by promoter to company (worth Rs345 crore); and augmenting the capital base of L&T Finance (by infusing Rs570 crore) and L&T Infra (by investing Rs535 crore), to meet the capital adequacy requirements to support the future growth in their businesses.
JM Financial Consultants Pvt Ltd, Citigroup Global Markets India Pvt Ltd, HSBC Securities and Capital Markets (India) Pvt Ltd, Barclays Securities (India) Pvt Ltd and Credit Suisse Securities (India) Pvt Ltd are the book running lead managers to the issue.
Equirus Capital Private Limited is the co-book running lead manager.