L&T Finance Holdings, the holding company of L&T's Financial Services business has announced a price band of Rs 51-59 for its Rs 1,245-crore initial public offering that opens on July 27. The issue closes on July 29. For anchor investors, the issue opens on July 26.

Of this, Rs 50 crore has been reserved for employees, Rs 120 crore for existing L&T shareholders, Rs 537.5 crore for qualified institutional buyers (QIBs), Rs 161.25 crore for non-institutional investors (HNIs) and Rs 376.25 crore for retail investors.

The company had already done a pre-IPO placement of Rs 330 crore with Capital International PE fund which picked up a 4.06 per cent stake, buying six crore shares at Rs 55 each.

L&T Finance Holdings has various subsidiaries namely L&T Finance (into retail and corporate finance), L&T Infrastructure Finance, India Infrastructure Developers Ltd and other investments in Federal Bank, City Union Bank, Invent Asset Reconstruction Company and NAC Infrastructure Company Ltd.

Plans on proceeds

Out of the issue proceeds, plans are to infuse Rs 515 crore in L&T Finance and Rs 485 crore in L& T Infrastructure Finance to meet capital adequacy requirements. The remaining funds would be utilised to repay L&T's inter-corporate deposits and for general corporate purposes.

The IPO has been given the highest grading five on five by both CRISIL and CARE indicating strong fundamentals.

The shares of L&T Finance Holdings would be listed on the NSE and BSE. JM Financials, Citgroup Global Markets and HSBC are the joint global coordinators and the book running lead managers (BRLMs).

Barclays and Credit Suisse are the BRLMs while Equirus Capital is the co-BRLM. Sharepro Services is the registrar to the issue.

L&T Finance, the subsidiary of L&T Finance Holdings had raised Rs 1,500 crore through a couple of non-convertible debenture issues-one in 2009 for Rs 1,000 crore and the other in 2010 for Rs 500 crore.

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