The Qualified Institutional Buyers (QIB) was subscribed 1.48 times.

The initial public offering (IPO) of L&T Finance Holdings was subscribed 5.19 times. The IPO received bids for 1112601100 shares, compared with 214,508,067 shares on offer. The company has fixed a price band of Rs. 51-59 per share.

The issue will close today, 29th July.

The reserved portion for Qualified Institutional Buyers (QIB) was subscribed 1.48 times, while that for non-institutional investors (HNIs) was subscribed 3.08 times and for retail investors was subscribed 5.51 times.

The company has raised around Rs. 1.53bn from anchor investors for its IPO, which opened for subscription on July 27. The anchor investors, which subscribed to the IPO are Malaysia's Tioman Investments (Khazanah) (Rs 888mn), DSP Blackrock (Rs 389mn) and Capital International (Rs 250mn).

The company plans to raise Rs. 15.75bn via the IPO. The net size for public in L&T Finance IPO has been fixed at Rs. 10.75bn.L&T Finance raised Rs. 3.3bn via pre-IPO placement. It issued 60mn shares at Rs. 55 a share to US-based PE fund of Capital International.

The IPO proceeds are proposed to be used for augmenting the capital base of L&T Finance and L&T Infra to meet the capital requirements arising out of expected growth in their assets, primarily the loan portfolio.

The IPO proceeds would be pumped into five L&T subsidiaries - L&T Infrastructure Co., L&T Finance, India Infrastructure Developers, L&T Investment Management and L&T Mutual Fund Trustees.

JM Financial Consultants, Citigroup Global Markets India and HSBC Securities and Capital Markets India are the joint global co-ordinators as well as book running lead managers to the issue.

Barclays Securities India and Credit Suisse Securities India are also book running lead managers.

Equirus Capital is the co-book running lead manager.

L&T started NBFC business in 2005 for infrastructure funding. L&T Finance has grown by over 30% CAGR since 2005.

Source :- IndiaInfoline

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Posted by Prashant Gandhi on 30 July, 2011 11:05:16 AM IST #