L&T Finance Holdings Places Pre-IPO Equity at Rs.55

L&T Finance Holdings Ltd (LTEH) - L&T Group's financial services holding company, and a subsidiary of Larsen & Toubro Ltd announced that it has completed today a private placement of 6 crore equity shares at a price of Rs. 55 per share aggregating to Rs. 330 crores with the private equity thud of Capital International of the US.

Mr. Y. M. Deosthalee, the CFO of L&T and Chairman of LTFH said "L&T is very happy to welcome the Capital International Private Equity Fund as a long term investor in the financial services holding Company."

L&T Finance Holdings, a subsidiary of Larsen & Toubro Ltd. had filed a Draft Red Herring Prospectus (DRHP) in relations to a proposed IPO. The proposed IPO, as contemplated in the draft red herring prospectus, includes reservations for current L&T shareholders as well as for permanent and full time employees and directors of L&T Finance Holdings, L&T Finance and its subsidiaries, L&T Infra and L&T.

L&T Finance Holdings is a financial holding Company offering a diverse range of financial products and services through its subsidiaries. Its operations are arranged into four business groups, being the Infrastructure Finance Group, the Retail Finance Group, the Corporate Finance Group and the Investment Management Group.

LTFH has four operating subsidiaries through which the different businesses are managed. These are L&T Finance Ltd that focuses on asset financing in the corporate, retail and rural segments; L&T infrastructure Finance Company Ltd that focuses on infrastructure financing; India Infrastructure Developers Ltd that proposes to focus on working capital financing for corporate borrowers and L&T Investment Management Limited that operates a SEBI registered Mutual Fund business. LTFH is headquartered in Mumbai, and has a presence in 23 states in India. As at May 31, 2011, it had 837 points-of-presence across India through its subsidiaries. Across its various business entities it employed nearly 4400 people as of May 31, 2011.

The Larsen & Toubro Ltd stock was trading at Rs.1861.25, up by Rs.54.45 or 3.01%. The stock hit an intraday high of Rs.1865 and low of Rs.1808.10.

The total traded quantity was 2.96 lakhs compared to 2 week average of 2.13 lakhs.

Source : Equity Bulls

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