L&T Finance Holdings up 3% on preferential issue to L&T; QIP opens

The stock was trading 3% higher at Rs 163 on the BSE after the company said it has raised almost Rs 20 billion from preferential allotment of shares to its promoter Larsen & Toubro

L&T Finance Holdings (LTFH) was trading 3% higher at Rs 163 on the BSE after the company said it has raised almost Rs 20 billion from preferential allotment of shares to its promoter Larsen & Toubro (L&T).

“The company completed the preferential allotment to L&T, of 107.81 million equity shares of Rs 10 each at the issue price of Rs 185.51 per share. Through this issue, the Promoter has infused additional capital amounting to Rs 19.99 billion demonstrating their belief and commitment to the LTFH growth story,” LTFH, a L&T Group company said in a press release.

LTFH said the capital infused by the promoter will help fund the growth of its focused lending businesses -- rural finance, housing finance and wholesale finance, and further strengthen the capital adequacy of the company. Post preferential issue, L&T’s holding in LTFH increased to 66.10% from 64.14% earlier.

Meanwhile, LTFH has fixed a floor price at Rs 161.79 per share for the qualified institutional placement (QIP) issue, which opened on Thursday, March 8, 2018.

At 11:21 am; LTFH was trading 2.6% higher at Rs 163 on the BSE, against 0.22% rise in the in the S&P BSE Sensex. The trading volumes on the counter nearly doubled with a combined 3.17 million shares changed hands on the BSE and NSE so far.

L&T was up 0.52% at Rs 1,290, after hitting high of Rs 1,293 on the BSE in intra-day trade.