The L&T Group's financial services subsidiary
L&T Finance Holdings on Thursday said its initial public offer (IPO) that hits the capital market next Wednesday will mobilise up to Rs 1,245 crore through the dilution of up to 17 per cent of its stake.
"The issue, which opens on July 27 and closes on 29, will be priced in the range of Rs 51 to 59. This is the first public issue from the house of L&T since the parent's listing way back in 1950," L&T Finance Holdings Chairman and Group Chief Financial Officer
Y M Deosthalee said.
L&T Finance Holdings, which is a fully-owned subsidiary of engineering major L&T, has five subsidiaries, namely L&T Infrastructure Company, L&T Finance, India Infrastructure Developers, L&T Investment Management and L&T Mutual Fund Trustees.
The last two are subsidiaries of L&T Finance, L&T Finance Holdings President and Whole-Time Director N Sivaraman said.
The combined asset base of these group companies as of FY11 stood at Rs 18,800 crore, up from Rs 12,000 crore in FY'10, Sivaraman said, adding that the company posted a PAT of Rs 392 crore last fiscal, up from 262 crore in the previous fiscal.
The total issue size is of Rs 1,575 crore, but the net issue size to the public will be only Rs 1,075 crore, as the company has already raised Rs 330 crore through pre-IPO placement with Capital International, which has picked up a 4 per cent stake in the company.
Apart from that, the company has also reserved some portion of the issue for L&T Group employees, as well as existing L&T shareholders, both of whom will get a Rs 2 discount on the issue price, Deosthalee said.
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