L&T Finance IPO subscribed over five times

The initial public offer (IPO) of L&T Finance Holdings was over subscribed 5.19 times on the final day of issue on Friday, reflecting strong demand from investors.

The company's IPO, which aims to raise Rs 1,245 crore, received bids for 111.2 crore shares, as against 21.45 crore shares on offer, as per data available on the National Stock Exchange till 1800 hours.

The issue is priced in the range of Rs 51 to Rs 59 apiece.

The portion reserved for QIB bidders got subscribed 1.93 times, the segment for non-institutional investors was subscribed 6.13 times and the one for retail investors was subscribed 8.64 times.

According to market experts, the offer is attractively priced, which is why it has seen such a smart response from investors.

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 Larsen & Toubro's (L&T) stake in the company would come down to 83 per cent.

At present, parent firm L&T holds 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.