L&T Finance Holdings Ltd (LTFH) has raised Rs 330 crore through a pre-initial public offer (pre-IPO) private placement with the private equity fund of US based Capital International.

The non-banking finance company placed 6 crore equity shares at Rs 55 each. LTFH is the financial services holding company of Larsen & Toubro Ltd (L&T).

Following the private placement, Capital International has 4.23 per cent stake in LTFH.

In its draft red herring prospectus filed with the markets regulator in March 2011, LTFH said if the pre-IPO placement is completed, the issue size offered to the public would be reduced to the extent of such pre-IPO placement subject to the net issue being at least 10 per cent of the post issue paid-up capital of the company.

The IPO will also include reservation for eligible employees and L&T shareholders aggregating up to Rs 50 crore and Rs 125 crore, respectively.

The NBFC is planning to raise Rs 1,750 crore (includes the amount raised through pre-IPO placement) through a public issue of equity shares.

The capital mobilised through IPO will be utilised to infuse capital into LTFH's group companies – L&T Infrastructure Finance Company, L&T Finance, and L&T Investment Management Ltd, said Mr N Sivaraman, President, LTFH.

L&T Infra provides financial products and services to customers engaged in infrastructure development and construction, with a focus on the power, roads, telecommunications, oil and gas and ports sectors in India. L&T Finance undertakes retail finance business and corporate finance business.

LTFH's wholly-owned indirect subsidiary (a wholly-owned subsidiary of L&T Finance), L&T Investment Management Ltd, conducts investment management business, which comprises the mutual fund segment (L&T Mutual Fund) and the portfolio management services segment (including portfolio management and sub-advisory services).

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