The board of directors of L&T Finance Holdings on Wednesday approved issue of equity shares for an aggregate consideration of up to ₹1,000 crore (inclusive of premium as may be fixed) through qualified institutional placement.
The board has also approved issue of equity shares for an aggregate consideration of up to ₹2,000 crore on preferential basis to Larsen & Toubro (promoter). The issue of equity shares through a combination of QIP and preferential allotment is being undertaken to enable L&T Finance Holdings to diversify its investor base and with the intention to maintain L&T’s shareholding, the company said in a statement to the stock exchanges. The above decisions are subject to approval of shareholders, the company statement added.
The proceeds of the issue would be used for various purposes including for the company’s business growth, strengthening its capital adequacy and for general corporate purposes, L&T Financial Holdings said.
L&T Finance Holdings had reported a 45 per cent increase in consolidated net profit at ₹360 crore for the third quarter ending December 2017, against ₹248 crore in the year-ago period. The consolidated profit includes arms such as L&T Finance, L&T Housing Finance, L&T Infrastructure Finance Company, L&T Investment Management and L&T Capital Markets.
Revenue from operations increased by 14 per cent to ₹2,384 crore. Other income shot up 106 per cent to ₹111 crore.