US-based private equity fund Capital International is likely to remain the second-largest shareholder in L&T Finance Holdings even after the non-banking finance company's Rs 1,245 crore initial public offer.
Capital International currently holds a 4.06% stake in L&T Finance, acquiring shares aggregating to Rs 330 crore at Rs 55 apiece during pre-IPO placement ahead of the issue.
Following pre-IPO placement, parent firm Larsen & Toubro (L&T) holds 95.94% in L&T Finance Holdings, while the US-based PE firm has a 4.06% stake.
L&T Finance Holdings is coming out with a Rs 1,245 crore public offer on June 27, which would be among the few large issues this year in a volatile market. The company has fixed a price band of 51-59 per share.
L&T Finance would issue 21.10 crore shares under the IPO and post listing, parent L&T's stake in the company would come down to 83%.
Following listing, QIB holdings in the company, including Capital International, would aggregate to 9.08% and corporate and retail buyers would together hold over 6%, according to a SMC Global research report.
L&T Finance, which is a non-deposit taking NBFC, has market capitalisation of over Rs 1 lakh crore, SMC Global said.
The IPO proceeds would be pumped into five L&T subsidiaries -- L&T Infrastructure Company, L&T Finance, India Infrastructure Developers, L&T Investment Management and L&T Mutual Fund Trustees.
Citigroup, JM Financial and HSBC are the lead managers for the proposed public issue.
