Friday, July 22, 2011

L&T Finance Holdings to tap market



L&T Finance Holdings Limited (LTFH), L&T Group's financial services holding company, and a subsidiary of Larsen & Toubro, on Thursday announced the issue of equity shares of the face value of Rs.10 each at a price band of Rs.51-59 per share aggregating up to Rs.1,245 crore. The initial public offer (IPO) opens on July 27.


The issue includes reservation of equity shares for subscription by eligible employees aggregating up to Rs.50 crore and by L&T shareholders Rs.120 crore. The bid/ issue will close on July 29. The minimum bid lot is 100 equity shares and in multiples of 100 shares thereafter.
The anchor investor bidding date would be one day prior to the bid/ issue opening date, that is, July 26.
The company has also decided to offer a discount of Rs.2 to the issue price for eligible employees.
At least 50 per cent of the net issue would be allotted on a proportionate basis to qualified institutional buyers (QIBs), provided that the company might allocate up to 30 per cent of the QIB portion to anchor investors on a discretionary basis out of which one-third shall be reserved for domestic mutual funds only.
Further, not less than 15 per cent of the net issue would be available for allocation on a proportionate basis to non-institutional bidders and not less than 35 per cent to retail individual bidders.
However, it is mandatory for all QIBs (except anchor investors), non-institutional bidders and L&T shareholders bidding under the L&T shareholders reservation portion for a payment amount of above Rs.2 lakh to participate in this issue through the application supported by blocked amount (ASBA) process.
On July 7, the company has, by way of a pre-IPO placement, allotted 5.78 crore shares and 22.32 lakh shares to MACE CIPEF Limited and MACE CGPE Limited, respectively for an aggregate consideration of Rs.330 crore at a subscription price of Rs.55 per share.
L&T Finance Holdings is a financial holding company offering a diverse range of financial products and services through its subsidiaries. Its operations are arranged into four business groups: Infrastructure Finance Group, the Retail Finance Group, the Corporate Finance Group and the Investment Management Group.
LTFH has four operating subsidiaries through which the different businesses are managed. These are: L&T Finance Limited that focusses on asset financing in the corporate, retail and rural segments; L&T Infrastructure Finance Company Limited that focusses on infrastructure financing; India Infrastructure Developers Limited that proposes to focus on working capital financing for corporate borrowers and L&T Investment Management Limited that operates mutual fund business.

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