L&T Finance sells 5.27% to Bain Capital for ₹708 crore

Bain Capital has acquired 5.27 per cent of L&T Finance Holdings for ₹708 crore.

The L&T promoted company will issue 3.18 crore shares on a preferential basis to BC Investments VI and 6.38 crore warrants to BC Asia Growth Investments (of Bain Capital) at ₹74 apiece.

The issue of preferential shares was worth ₹236 crore while the warrants would fetch ₹472 crore and bring down the promoters holding in L&T Finance to 69.08 per cent, from 72.92 per cent, said the company on Monday.

The company has sought shareholders approval for the special resolution through electronic voting which will be open between September 22 and October 21.

L&T Finance will also amend the articles of association to reflect the terms of the investment.

Meanwhile, Citigroup Global Markets Pvt Ltd Mauritius has picked up 8.6 crore shares worth ₹602 crore in a bulk deal on the NSE. The deal was done at ₹70 a share, as per data available on the NSE.

L&T Finance Holding intends to use the fresh fund flow to meet the working capital of subsidiary companies.

The warrants are subject to conversion into equity as per the company’s capital requirement between six and 18 months from the date of allotment, said L&T Finance.

Allotment of shares and warrants is expected to be completed within 15 days of shareholder approval or approval of Foreign Investment Promotion Board, it said.

Responding to a stock exchange query on a news report about Bain Capital investing $300 million in L&T Finance on September 14, L&T Finance clarified that as a part of its ongoing investor relations exercise, the company meets various investors. 

The company needs capital from time to time as part of its growth plans over the next few years. It would therefore be continuously examining various avenues of capital raising, it said.

Shares of the company were down 2.76 per cent at ₹66.9 on the NSE down 2.76 per cent.