L&T Finance Holdings - As the name suggest, it’s a financial holding company promoted by Larsen & Toubro Ltd.
Business:It offers variety of financial products and services for the corporate, retail and infrastructure finance sectors, mutual fund and investment management.
L&T Finance Holdings is registered with the RBI as a Systemically Important Non-Deposit Taking Non-Banking Financial Company and has applied for registration as a Core Investment Company.
Operations:
- The Infrastructure Finance Group,
- The Retail Finance Group,
- The Corporate Finance Group and
- The Investment Management Group.
Customer:
Company’s customer includes individual retail customers as well as large companies, banks, multinational companies and small- and medium-enterprises. LTF offers a spectrum of financial products and services for trade, industry and agriculture.The company's focus segments are corporate products, construction equipment, CVs and tractors.
Objects of the Issue:
1. Repayment of inter corporate deposit issued by Promoter to the Company;
2. 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;
3. To achieve the benefits of listing on the Stock Exchanges; and
4. General corporate purposes including meeting the expenses of the Issue.
Issue Detail:
Issue Open: Jul 27, 2011 - Jul 29, 2011
Issue Type: 100% Book Built Issue IPO
Issue Size: Equity Shares of Rs. 10
Issue Size: Rs. 1,245.00 Crore
Face Value: Rs. 10 Per Equity Share
Issue Price: Rs. 51 - Rs. 59 Per Equity Share
Grading:
CARE has assigned an IPO Grade 5 to L&T Finance IPO. This means as per CARE, company has 'Strong Fundamentals'. CARE assigns IPO grading on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals.
Subscribe:
I recommend “subscribe” for the IPO with following reasons.
- L&T group has strong brand value and history of creating wealth for the investors.
- L&T group is planning to restructure and come up with different IPO’s of it’s non listed companies and L&T Finance Holdings amongst the first to hit the market would attract investors.
- The company is going to raise Rs. 161 crore via anchor investors in the IPO, which should be one day before the IPO opens for subscription. There is going to be great demand from the Anchor investors for the IPO and would cascade into the IPO by institutional investors.
- “Strong Fundamental” IPO with grade of 5 have done really good in past. Like, Coal India
Happy Investing!!
