L&T Finance Holdings Ltd IPO opens on July 27, 2011

Jul 27, 2011     Posted under: Investment

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L&T Finance Holdings has opened its IPO on 27th July 2011 in the price band of Rs 51-59.

This is the biggest IPO issue of this financial year and the company expects to Rs 1,092 crore out of the total issue size of Rs 1,245 crore. It is expected to be listed at a price of Rs 64, 65. Brokerage Nirmal Bang has advised investors with long term perspective to ‘subscribe’ to the initial public offering of L&T Finance Holdings. “The issue looks fairly priced for the near term,” the brokerage said, but warned that it does not offer a potential upside on listing.

Issue Details

  • Issue Open: July 27, 2011 – July 29, 2011
  • Price Band: Rs 51 – Rs 59
  • Issue Size: Rs 1245 crs (including employees – Rs.50 cr and L&T shareholders – Rs.120 cr)
  • Issue Size: 21.1 – 24.4 crs shares
  • QIB upto 50% eq sh
  • Retail atleast 35% eq sh

  • Non Institutional atleast 15% eq sh
  • Face Value: Rs 10
  • Book value: Rs 20.40 (March 31, 2011)
  • Bid size: – 100 equity shares and in multiples thereof
  • 100% Book built Issue

Capital Structure

  • Pre Issue Equity: Rs. 1477.02 crs
  • Post issue Equity: Rs. 1748.04 crs
  • Listing: BSE & NSE
  • Lead Managers: JM Financial Consultants Pvt Ltd, Citigroup Global Markets India Pvt Ltd, HSBC Securities & Capital Markets (India) Pvt Ltd, Barclays Securities (India) Pvt Ltd, Credit Suisse Securities (India) Pvt. Ltd
  • Co- Book Lead Manager: Equirus Capital Pvt Ltd.
  • Registrar to issue: SharePro Services (India) Pvt Ltd

CARE & ICRA IPO grading: CARE IPO Grade 5 and ICRA IPO Grade 5 indicating Strong Fundamentals.

IPO Note

L&T Finance Holdings Ltd (LFHL) is 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 its direct and indirect wholly owned subsidiaries. LFHL is registered with the RBI as an NBFC-ND-SI. It is promoted by Larsen & Toubro Limited (“L&T”), one of the leading companies in India, with interests in engineering, construction, electrical and electronics  manufacturing and services, information technology and financial services.

Objects of Issue

  • Repayment of inter-corporate deposit issued by its Promoter to LFHL
  • To augment the capital base of L&T Finance and L&T Infra, to meet the capital adequacy requirements to support the future growth in their business
  • Benefit of listing of the Equity Shares on the Stock Exchanges.
  • General Corporate Purposes

NitiN Kumar Jain

Nitin works in an IT MNC professionally but blogs and owns NKJ Live. He is also the co-owner of a professional start-up ARGHAM BYTES

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