This is the first listing in L&T family after L&T’s listing in 1950.
Rating Agency CARE has assigned an IPO Grade 5. This means as per CARE, company has 'Strong Fundamentals'.
The company has already raised Rs 330 crore through a pre-IPO placement to Capital International which has picked up a four percent stake in the company at Rs 55 per share.
The total issue size is of Rs 1,275 crore or 17% stake in the company.
Apart from that about Rs.170 Crores is reserved for preferential allotment to L&T Employees and Shareholders, who will be entitled to a discount of Rs.2 per share on allotment price.
That leaves a net issue of Rs 1075 crore available for general public.
About the Company:
L&T Finance Holdings is a fully-owned subsidiary of engineering major L&T having five subsidiaries namely L&T Infrastructure Company, L&T Finance, India Infrastructure Developers, L&T Investment Management and L&T Mutual Fund Trustees.
The combined asset base of these group companies as of FY11 stood at Rs 18,800 crore, up from Rs 12,000 crore in FY'10. The company posted a PAT of Rs 392 crore last fiscal, up from 262 crore in the previous fiscal.
L&T Infrastructure Finance is a diversified company, financing power, roads, telecom, oil and gas, ports and urban infrastructure. This is a relatively new player, incorporated in 2007. Yet, it has scaled its portfolio to Rs 7,186 crore, as of March 2011. The exposure is also pretty much diversified with power, roads and telecom accounting for 29 per cent, 17 per cent and 14 per cent of the total exposure.
The size of the loan book under L&T Finance, as of March 2011, was Rs 10,156 crore. This includes exposure of Rs 460 crore to the micro finance sector. L&T Finance's loan book is riskier than the infrastructure financing business as it involves lending to smaller and mid-sized businesses. However, the company only lends for income generating activities, thus mitigating the risk to some extent.
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
»» Market Lot: (to be announced)
»» Minimum Order Quantity: (to be announced)
»» Listing At: BSE, NSE
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