After obtaining the government approval for its FDI proposal early this week, L&T Finance has now set its eye entirely on its upcoming IPO. L&T Finance, which has filed for IPO to raise $333 million (around Rs 1,500 crore), expects it to hit the market in the fourth quarter of FY2011. YM Deosthalee, CFO of Larsen & Toubro (L&T) said on Friday, ?We have got the regulatory approvals and we hope in the January-March quarter, we will come out with our IPO.? He was talking on the sidelines of a CSR seminar in Mumbai.
Meanwhile, the government on Tuesday approved a proposal by L&T Finance Holdings Ltd. for raising Rs 641 crore in foreign direct investment by selling stake to overseas investors through its proposed initial public offer (IPO). Shares of L&T on Thursday slipped marginally by 0.62% to close at Rs 1983.30 on the BSE.
L&T in August at its 35 th annual general meeting revealed that it will unlock value of all its major subsidiaries by making them separate entities, beginning with a public float of its finance arm. ?We will unlock shareholders? value in our major subsidiaries like L&T Finance, L&T Infotech and L&T Infrastructure, one after another. By the end of this calendar year we may be able to launch an initial public offering of L&T Finance, which already is the third largest non-banking finance company in the country,? L&T chairman and managing director Anil M Naik had said during the company?s AGM. The conglomerate also plans to foray into the banking sector with its finance arm and is waiting for policy clarity from the regulator.
Deosthalee, who is currently the whole-time director and CFO of L&T has been nominated as the chairman and managing director (CMD) of L&T Finance Holdings (LTFHL). His appointment as CMD will be effective from the date of listing of the equity shares of LTFHL, pursuant to LTFHL?s proposed initial public offering.