L&T Finance Holdings and group to raise Rs 15,000 cr for IPO finance

LTFHL is into services across rural, housing and wholesale finance businesses

L&T Finance Holdings (LTFHL) and its subsidiaries will raise a little over Rs 15,000 crore through commercial paper, a short-term money market instrument, and bonds to predominantly finance Initial Public Offers of equity.

LTFHL, through its subsidiaries, is into services across rural, housing and wholesale finance businesses. Its group entities also offer fund management and non-fund based services such as insurance and mutual fund distribution.

The entities rasing money through commercial paper are — L&T Finance up to Rs 9,000 crore, L&T Infrastructure Finance, Rs 5,000 crore and L&T Housing Finance, Rs 1,000 crore. LTFHL is raising about Rs 250 crore through debentures, according to rating agency Icra.

Generally, finance companies raise resources over a period in one or more tranches, based on an assessment of requirements, said a senior official with a merchant banking entity that arranges issues.

On a consolidated basis, for 2016-17, LTFHL reported a net profit of Rs 1,042 crore on an asset base of Rs 72,514 crore. It had reported a net profit of Rs 857 crore on an asset base of Rs. 63,746 crore in FY16. Net worth of the consolidated entity was Rs 9,107 crore as on end-March 2017.