Engineering major L&T and its financial services arm L&T Finance Holdings today divested 10.22 per cent stake to leading American private equity firm Bain Capital for over Rs 1,300 crore in a mix of preferential allotment and market deals.
While L&T Finance divested 5.27 per cent of its stake to Bain Capital through preferential shares and warrants for Rs 707.9 crore, the parent L&T sold 4.95 per cent of its stake in the NBFC to the PE fund through a block deal, raising around Rs 602 crore.
According to NSE block deal data, L&T sold over 8.5 crore shares or 4.95 per cent at an average price of Rs 70 a share for Rs 602 crore, while L&T Finance sold over 9.5 crore shares or 5.27 per cent for Rs 707.9 crore.
The exchange data did not name the buyer, but sources said the stocks were picked by Bain Capital. Citigroup acted as the custodian for the deal.
L&T Finance board today decided to raise capital (Rs 707.87 crore) by way of preferential issue of eligible securities and warrants to Bain Capital Investments VI and Bain Capital Asia Growth Investments (collectively Bain Capital) respectively, subject to approval from shareholders and relevant statutory/ regulatory authorities, the company said in a statement.
Before today's block deal, L&T held 1,25,49,36,010 number of shares aggregating to 72.93 per cent of equity capital in the NBFC as of the June quarter. Today the parent divested 4.95 per cent to Bain Capital through a block deal.
Bain Capital is a Boston, US-based PE fund, and had n March it had announced that it would invest USD 3 billion in Indian assets. As of March 2015 its exposure in the domestic companies reportedly stood at USD 1.3 billion.
L&T Finance would issue an aggregate of 9,56,57,961 equity shares and warrants at Rs 74 per share/ warrant, amounting to an infusion of Rs 707.87 crore, constituting 5.27 per cent of the post-issue equity share capital on a fully diluted basis.
Under the agreement, Bain Captial will be issued 3,18,36,971 equity shares at a price of Rs 74 per share, amounting to an aggregate of Rs 235.59 crore or 1.75 per cent of the post-issue equity share capital on a fully diluted basis to BC Investments VI, while 6,38,20,990 warrants at a price of Rs 74 per warrant or 3.51 per cent, amounting to Rs 472.27 crore BC Asia Growth Investments.
