L&T Fin to hit markets on Wed, to mop up Rs. 1,275 crore
Monday, 25 July 2011, 23:33 IST
By PTI
By PTI
Mumbai: The L&T Group's financial services subsidiary L&T Finance Holdings that controls five separate entities, today announced its plans to hit the capital markets to mobilise up to Rs. 1,245 crore from the primary markets by diluting up to 17 percent of its stake.
"The issue, which opens on July 27 and closes on 29, will be priced in the range of Rs. 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 said.
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 Rs. 18,800 crore, up from Rs. 1,2000 in FY10, Sivaraman said, adding the company had a PAT of Rs. 392 crore last fiscal, up from Rs. 262 crore in the previous fiscal.
The total issue size is of Rs. 1,575 crore, but the net issue size to the public will be only Rs. 1075 crore, as the company has already raised Rs. 330 crore through a pre-IPO placement to Capital International which has picked up a four percent 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, who will get a Rs. 2 discount to the issue price, Deosthalee said. The Company in consultation with the Joint Global Coordinators and Book Running Lead Managers, the Book Running Lead Managers and the Co-Book Running Lead Manager, has decided to offer a discount of Rs. 2 to the Issue Price for eligible employees ("Eligible Employee Discount").
"The issue, which opens on July 27 and closes on 29, will be priced in the range of Rs. 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 said.
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 Rs. 18,800 crore, up from Rs. 1,2000 in FY10, Sivaraman said, adding the company had a PAT of Rs. 392 crore last fiscal, up from Rs. 262 crore in the previous fiscal.
The total issue size is of Rs. 1,575 crore, but the net issue size to the public will be only Rs. 1075 crore, as the company has already raised Rs. 330 crore through a pre-IPO placement to Capital International which has picked up a four percent 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, who will get a Rs. 2 discount to the issue price, Deosthalee said. The Company in consultation with the Joint Global Coordinators and Book Running Lead Managers, the Book Running Lead Managers and the Co-Book Running Lead Manager, has decided to offer a discount of Rs. 2 to the Issue Price for eligible employees ("Eligible Employee Discount").
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