L&T Finance announces completing merger of 3 subsidiaries with itself

Merger will create "sustainable value" for stakeholders and help governance, says NBFC

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L&T Finance Holdings (LTFH), a non-banking financial company (NBFC), on Monday announced it had completed the merger of three subsidiaries with itself for “superior governance” and growth.

All lending businesses of the company have been put under one single entity, LTFH, after the merger of L&T Finance Limited, L&T Infra Credit Limited and L&T Mutual Fund Trustee Limited.

The boards of the three companies had in January approved the proposed merger and the process was completed on receiving approvals from shareholders, creditors, and regulatory authorities that included the Reserve Bank of India (RBI), the National Company Law Tribunal, the Securities and Exchange Board of India, and stock exchanges.

“It gives me immense pleasure to announce that the merger has been completed before the envisaged time with all the necessary approvals in place. This merger is amongst the key strategic initiatives undertaken by us in line with the ‘right structure’ strategy that our company has been implementing over the last seven years; with the number of NBFCs reducing from 8 to 1,” said Dinanath Dubhashi, managing director and chief executive officer of LTFH.

LTFH said benefits from the merger include enhanced governance and controls, liability management, ability to provide enhanced return to shareholders, seamless compliance and adherence to RBI’s scale-based regulations, and better operational efficiency

“The decision to merge two lending entities with the same NBFC – Investment & Credit Company registrations and one non-operating entity with LTFH was taken after carefully considering market dynamics, internal synergies, and a vision for sustained growth. With the merger, we believe we will be able to unlock newer avenues for growth, innovation, and long-term success. All these benefits would lead to superior governance that would create sustainable value for all stakeholders,” said Dubhashi.

LTFH was 3.20 per cent up at Rs 154.20 on the National Stock Exchange at 11.15 am.