L&T Finance Holdings has completed the sale of its mutual fund business to HSBC Asset Management (India) for ₹3,484 crore, the company said in a release.
L&T Investment Management Limited, the asset manager to L&T Mutual Fund, had announced the sale in December 2021.
The proceeds, realised “as consideration for the sale and realised surplus cash balance of ₹764 crore in L&T Investment Management”, will help accelerate the company’s drive towards retailisation and strengthen the balance sheet, it said.
“The sale of the mutual fund business provides solid impetus to our pace of realisation, where the retail portfolio mix today stands at 58 per cent of our total loan book,” said MD and CEO Dinanath Dubhashi.
L&T Finance saw the highest ever quarterly retail disbursements of ₹10,238 crore in Q2FY23, up 84 per cent higher on year. The non-bank company’s retail finance portfolio grew 27 per cent on year to ₹52,040 crore as of September 30.