L&T Finance Holdings has raised around Rs 153 crore by placing shares with anchor investors. The placement has been done at Rs 56 a share, even as the price band for the initial public offer (IPO) has been fixed between Rs 51 and Rs 59. The anchor investors include: Tioman Investments (Khazanah) of Malaysia (Rs 88.8 crore), DSP Blackrock (Rs 38.9 crore) and Capital International (Rs 25 crore).
Last week, the company had said it planned to sell shares worth Rs 160 crore to anchor investors. “Before the start of subscriptions to the IPO, L&T Finance plans to sell shares worth about Rs 1.60 billion to anchor,” said
N Sivaraman, senior vice-president (financial services), Larsen & Toubro, while interacting with the media.
The IPO, which opens for subscription on July 27, is likely to dilute close to 17 per cent of its post-issue equity and is also the largest such transaction this year. At the upper end of the price band, the IPO will raise Rs 1,245 crore.
L&T Finance Holdings had filed prospectus with Sebi in September 2010 and got the approval on December 1, 2010. However, choppy equity markets and lack of investor interest has held the IPO for the past eight months.
The company has managed to rope in a pre-IPO investment of Rs 330 crore from two Mauritius-based entities — MACE CIPEF and MACE CGPE — at Rs 55 a share.
According to the prospectus, the proceeds will be used to meet the growing business needs and capital adequacy requirements of two of the company’s subsidiaries, L&T Finance and L&T Infrastructure. While Rs 345 crore will be infused into L&T Finance, Rs 515 million will go to L&T Infrastructure. The balance will be used to repay inter-corporate deposits by the promoters and for general purposes.
