The
initial public offer of L&T Finance Holdings was subscribed nearly 46 per cent at the end of the first day of the issue.
The company's IPO received bids worth 9.82 crore shares till 17:00 hours on the first day, as against 21.45 crore shares on offer, as per data available on the stock exchanges.
L&T Finance Holdings entered the capital markets with an IPO price band of Rs 51 to Rs 59 apiece. The issue, which opened for subscription on Wednesday, will close on July 29, 2011.
L&T Finance aims to mop up Rs 1,245 crore from the capital market. The company will issue 21.10 crore shares under the IPO and post-listing, parent L&T's stake in the company would come down to 83 per cent.
At present, parent firm Larsen & Toubro (L&T) holds a 95.94 per cent stake in the company and the remaining 4.06 per cent is held by US-based private equity fund Capital International.
The IPO proceeds would be pumped into five L&T subsidiaries -- L&T Infrastructure Company, L&T Finance, India Infrastructure Developers, L&T Investment Management and L&T Mutual Fund Trustees.
Citigroup, JM Financial and HSBC are the lead managers for the public issue.
Looking to invest in the IPO? Here are a few tips from our experts -1.
Handy tips when investing your money Here are some tips to make sure that you are not handed a raw deal by the IPO-issuing company.
2.
Check grades before investing in the IPO Short-term investors, chasing listing gains, often ignore IPO grades. But investors looking for sustainable long-term returns should not do so.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
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