L&T Finance files draft papers for IPO

Our Bureau Mumbai | Updated on April 01, 2011

L&T Finance Holdings promoted by infrastructure bellwether L&T, filed its draft red herring prospectus with the SEBI on Thursday.

The company plans to raise up to Rs 1,750 crore through the IPO route of which shares for up to Rs 125 crore has been earmarked for existing L&T shareholders.

The company plans to repay the inter-corporate deposit of Rs 345 crore issued by its promoter L&T to the company. In addition, the company also plans to infuse capital into two of its subsidiaries; Rs 570 crore in L&T Finance and Rs 535 crore in L&T Infrastructure Finance with the issue proceeds. Its third subsidiary is India Infrastructure Developers Ltd.

L&T Finance owns L&T Mutual Fund, formerly DBS Chola AMC. The company also has minority interest in the banking sector with less than five percent stake each in Federal Bank and City Union Bank. It also holds an 8.9 per cent stake in Invent Asset Reconstruction Company with an investment of Rs 15.975 crore and a 30 per cent stake in NAC Infrastructure & Equipment Ltd, a company in the business of equipment leasing.

Published on April 01, 2011

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