CARE assigns 'CARE IPO Grade 5' to L&T Finance Holdings Ltd IPO

CARE has assigned a 'CARE IPO Grade 5' to the proposed IPO of L&T Finance Holdings Ltd. (L&TFH). 'CARE IPO Grade 5' indicates 'Strong Fundamentals'. CARE assigns IPO grades on a scale of Grade 5 to Grade 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals. CARE's IPO grading is an opinion on the fundamentals of the issuer. The grade assigned to any individual issue represents a relative assessment of the 'fundamentals' of the issuer.

The grading factors in the well diversified business profile of L&TFH in the financial sector through its direct & indirect subsidiaries that have good presence and track record in segments like retail finance, corporate finance, infrastructure finance and asset management amongst others. The grading further reflects strong consolidated financial position, comfortable liquidity position with strong resource raising ability and good asset quality of its subsidiaries. The grading reflects the strengths that the company derives from its parent Larsen and Toubro Ltd. (L&T), which is one of India's leading companies having presence in engineering, construction, electrical & electronic manufacturing and services, infrastructure, information technology, financial services and power. L&TFH is a strategically important subsidiary of L&T and its profile is strengthened by the management experience, technical expertise, corporate governance practices and brand value of the L&T group.

L&TFH, promoted by L&T, is a financial holding company offering a diversified range of financial products and services across the corporate, retail and infrastructure sectors and having presence in mutual fund products as well as investment management services through direct and indirect wholly owned subsidiaries. L&TFH is registered as a Non-Banking Finance Company (Non Deposit Taking – Systemically Important) (NBFC-ND-SI) and has applied to RBI for registration as a Core Investment Company (CIC). L&TFH has two major subsidiaries, L&T Infrastructure Finance Company Ltd (L&T Infra) (which is registered with RBI as an Infrastructure Finance Company) and L&T Finance Ltd. (LTF) (which is registered as NBFC- Asset Finance Company with RBI and is into corporate and retail financing). L&TFH also has two wholly-owned indirect subsidiaries (whollyowned subsidiaries of LTF) – L&T Investment Management Ltd (L&TIM) (which is registered as an asset management company with SEBI and has received a license from SEBI to conduct portfolio management services) and L&T Mutual Fund Trustee Ltd. (L&TMFT) (which is the trustee company for the Mutual Fund).

Source : Equity Bulls

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