L&T Fin open to inorganic route for MF business

Engineering and construction major Larsen & Toubro Ltd is open to taking the inorganic route to enter the asset management business, according to N. Sivaraman, executive vice-president (financial services).

The acquisition would be through its non-banking finance subsidiary, L&T Finance Ltd, he said.

“Given the changes that have happened in the regulations as well as the market situation in the last six-eight months, there are organic (growth) options as well as acquisition opportunities,” Sivaraman said at a press meet.

R. Shankar Raman, executive vice-president (finance), L&T, said, “We have a few asset management proposals on the table. We are looking at them.”

The company, which has an asset size of Rs 5400 crore, is aiming for 25 per cent year-on-year rise in loans in 2009-10.

The company has also said that L&T Finance’s public issue of non-convertible debentures for raising Rs 500 crore has been subscribed by 3.86 times

The resources would be used for lending and investments, repaying existing loans, deployment in business operations, including capital expenditure and working capital requirements, the company said.

Srinivasan said the L&T Finance might come up with another NCD issue in the current financial year.