Search Now

Recommendations

Wednesday, July 27, 2011

L&T Finance Holdings IPO subscribed 46% on day one


Gets bids for 9.82 crore shares

The initial public offer (IPO) of L&T Finance Holdings was subscribed 46% on the first day of the issue today, 27 July 2011. The IPO received bids for 9.82 crore shares, compared with 21.45 crore shares on offer.

The price band for the IPO is Rs 51 to Rs 59 per share. The issue closes on Friday, 29 July 2011.

On Tuesday, 26 July 2011, the company raised Rs 153.04 crore by selling 2.73 shares at Rs 56 each to anchor investors. Earlier, the firm had garnered Rs 330 crore through a private placement of 6 crore equity shares at Rs 55 per share to the private equity fund of Capital International of the US on 7 July 2011.

L&T Finance Holdings is the financial holding company offering a diverse range of financial products and services through its four operating subsidiaries. These are L&T Finance that focuses on asset financing in the corporate, retail and rural segments; L&T Infrastructure Finance Company that focuses on infrastructure financing; India Infrastructure Developers that proposes to focus on working capital financing for corporate borrowers and L&T Investment Management that operates a Securities & Exchange Board of India (Sebi) registered Mutual Fund business.

The proceeds of the IPO will be used for expansion plans of two of its subsidiaries - L&T Finance and L&T Infrastructure Finance.

Mumbai-based L&T Finance Holdings has a presence in 23 states in India. As at 31 May 2011, it had 837 points-of-presence across India through its subsidiaries.

On a consolidated basis, L&T Finance Holdings' net profit rose 49% to Rs 392.57 crore on 48% increase in total income to Rs 2086.38 crore in the year ended March 2011 over the year ended March 2010.

L&T Finance Holdings is a subsidiary of L&T, India's biggest engineering & construction firm in terms of order book.