MUMBAI: Engineering giant Larsen & Toubro (L&T) is planning to hit the capital market with the initial share sale of its non-banking arm L&T Finance Holdings. The company expects to mop up Rs 1,750 crore from this issue in what could be the biggest IPO so far this year.
This move is in line with L&T's restructuring plans to spin off some of its businesses into independent and self-sustaining units to unlock value in India's largest engineering and construction firm. "We will be filing the final offer document with Sebi by next week and then start meeting investors for the forthcoming issue," said a company source.
The company offers diverse range of financial products and services in the corporate, retail and infrastructure finance space through its wholly owned subsidiaries.
The company intends to use the sale proceeds to repay inter-corporate deposit of Rs 345 crore issued by its parent firm and to augment the capital base of its subsidiaries L&T Finance and L&T Infra by Rs 570 crore and Rs 535 crore, respectively.
L&T Finance plans to enter the investment banking space and recently roped in Ved Prakash Chaturvedi to head its capital market and mutual fund business. JM Financial, Citigroup, HSBC Securities, Barclays Securities and Credit Suisse are the book running lead managers to the issue. Equirus Capital is the co-book running lead manager.
Shares of L&T closed at Rs 1722, up 1.27% in a flat Mumbai market on Thursday.
source-times of india
stevenson
management trainee-fundamental analyst
DENIP Consultants Pvt Ltd.
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