L&T Finance Holdings completes acquisition of Indo Pacific Housing Finance

L&T Finance Holdings Limited (LTFH) has announced the successful completion of the acquisition of Indo Pacific Housing Finance Limited (IPHF). LTFH, earlier on 12th Mar., 2012, had announced the signing of the definitive agreement for acquisition of IPHF.

As of its last audit, for the year ended March 2012, IPHF had a loan book of Rs. 161 cr., primarily consisting of loans to self-employed and low income category borrowers. LTFH believes that its brand and reach will enable building a robust and valuable housing finance portfolio. The acquisition gives LTFH the opportunity to explore both complementary geographies and customer segments. LTFH's plan is to build a balanced portfolio by adding salaried and urban customers by using L&T's presence as a contractor and developer.

The acquisition furthers lends to LTFH's philosophy of being a broad range financial services provider by opening up a new asset category.

Speaking on the occasion, Mr. N. Sivaraman, President & Whole-time Director of LTFH, said, "Considering the synergy benefits derived from the existing infrastructure and reach of LTFH along with the well experience team at IPFH, we look forward to build a robust book over the next 5 years."

Mr. Y. M. Deosthalee, Chairman & Managing Director, LTFH, said, "We are building a comprehensive financial services entity, creating sustainable value for all its stake holders. The acquisition of IPHF is a step in that direction. We aspire to create a credible housing finance entity focused on innovation and best in class customer service."

The consideration to be paid is Rs. 110 cr. and will be subject to the closing audit.

The L&T Finance Holdings Ltd stock was trading at Rs.52.05, down by Rs.0.15 or 0.29%. The stock hit an intraday high of Rs.53.15 and low of Rs.51.50.

The total traded quantity was 9.98 lakhs compared to 2 week average of 8.63 lakhs.

Source : Equity Bulls

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