L&T Finance Holdings (LTFH) had earlier this year filed the draft papers with SEBI for raising Rs 1,750 crore through an initial public offer (IPO). It stated that 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.
It is likely that the company now would launch its initial public offer on July 19. The issue will also include reservation for eligible employees and L&T shareholders aggregating up to Rs 50 crore and Rs 125 crore, respectively.
The company proposes to use issue proceeds for repayment of intercorporate deposit issued by promoter to company (worth Rs 345 crore); and augmenting the capital base of L&T Finance (by infusing Rs 570 crore) and L&T Infra (by investing Rs 535 crore) and to meet the capital adequacy requirements to support the future growth in their business.
JM Financial Consultants, Citigroup Global Markets India, HSBC Securities and Capital Markets (India), Barclays Securities (India) and Credit Suisse Securities (India) are the book running lead managers to the issue. Equirus Capital is the co-book running lead manager.
L&T Finance is a financial holding company offering a diverse range of financial products and services across the corporate, retail and infrastructure finance sectors, as well as mutual fund products and investment management services, through direct and indirect wholly-owned subsidiaries.