L&T Finance Holdings falls as L&T pares stake through OFS

L&T Finance Holdings lost 1.09% to Rs 77 at 10:42 IST on BSE after its promoter L&T pared stake through an offer for sale to comply with minimum public holding rules of market regulator.

Shares of L&T rose 0.42% at Rs 1,722.90.

Meanwhile, the S&P BSE Sensex was up 68.32 points or 0.27% to 25,542.21

On BSE, so far 11.74 lakh shares of L&T Finance Holdings were traded in the counter as against average daily volume of 26.14 lakh shares in the past one quarter.

The stock hit a high of Rs 77.65 and a low of Rs 76.30 so far during the day. The stock had hit a 52-week high of Rs 88.35 on 13 March 2014. The stock had hit a 52-week low of Rs 53 on 7 August 2013.

The stock had outperformed the market over the past one month till 11 June 2014, gaining 19.77% compared with the Sensex's 10.78% rise. The scrip, however, underperformed the market in past one quarter, falling 4.07% as against Sensex's 16.71% rise.

The large-cap company has equity capital of Rs 1718.67 crore. Face value per share is Rs 10.

The offer for sale (OFS) of shares of L&T Finance Holdings by its promoter L&T was oversubscribed 3.18 times. Bids were received for 8.79 crore shares as against a total of 2.75 crore shares on offer in the OFS conducted on Wednesday, 11 June 2014. Parent L&T had offered 1.65 crore shares for sale, leading to a dilution of 0.96% stake, at a floor price of Rs 74 each. It had said it may sell up to 1.1 crore shares, in addition to the sale of shares. With the conclusion of OFS, L&T's shareholding in L&T Finance Holdings fell close to 75%, meeting market regulator Securities and Exchange Board of India (Sebi)'s norms wherein promoters' holding in listed companies is capped at 75%. Shares of L&T Finance Holdings had dropped 5% to settle at Rs 77.85 on Wednesday, 11 June 2014.

L&T owned 76.61% stake in L&T Finance Holdings (as per the shareholding pattern as on 31 March 2014).

L&T Finance Holdings' consolidated net profit rose 8.8% to Rs 186.54 crore on 24.9% growth in total income to Rs 1431.36 crore in Q4 March 2014 over Q4 March 2013.

L&T Finance Holdings is a financial holding company offering a diverse range of financial products and services across the corporate, retail and infrastructure finance sectors, as well as mutual fund products and investment management services, through its wholly-owned subsidiaries.

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