Larsen & Toubro (L&T) today said its financial services unit has filed draft papers with the Securities and Exchange Board of India (Sebi) for raising Rs 1,750 crore from the capital market.
L&T Finance Holdings proposes to come out with an initial public offer (IPO) of equity shares for an amount aggregating to Rs 1,750 crore, L&T said in a filing to the Bombay Stock Exchange.
Last year in September, L&T Finance Holding had filed the draft paper with Sebi for a Rs 1,500-crore IPO.
L&T said it is contemplating an addition to the proposed objects of the issue and has increased the size of the IPO from Rs 1,500 crore to Rs 1,750 crore.
As per the details available with the draft red herring prospectus (DRHP) filed with the Sebi, the company may consider a pre-IPO placement of 6 crore equity shares to one or more investors, totalling up to Rs 400 crore.
The objects of the issue are to augment the capital base of L&T Finance and L&T Infra to meet the capital requirements arising out of expected growth in their assets, primarily the loan portfolio, and for other general corporate purposes, it said in the draft prospectus.
L&T Finance Holdings, earlier known as L&T Capital Holdings, is the holding company for L&T Finance (that operates mutual fund business) and L&T Infra.
L&T Finance is a financial holding company offering a diverse range of financial products and services across the corporate, retail and infrastructure finance sectors, as well as mutual fund products and investment management services, through its direct and indirect wholly-owned subsidiaries.
JM Financial, Citigroup and HSBC are among the book running lead manager to the issue.
