By IANS,
Chennai : Engineering and construction group Larsen and Toubro (L&T) is working on launching a private equity fund to finance infrastructure projects.
“We are working at it. But it may take some time. Our current target is to complete the IPO (initial public offering) of L&T Finance Holdings Ltd,” president and director (whole time) of L&T Finance Holdings N. Sivaram told IANS here Monday on the sidelines of an event.
L&T is planning to launch the private equity fund as a part of a strategy to become a financial supermarket.
Meanwhile for the first time in L&T’s history, one of its business is hitting the market with an IPO.
L&T Finance Holdings – the holding company for L&T Finance, L&T Infrastructure Finance, L&T Investment and Management and India Infrastructure Developers – is raising up to Rs.1,245 crore to repay inter-corporate deposits raised from parent L&T and augmenting the capital of subsidiaries.
Sivaraman said the price band is fixed between Rs.51 and Rs.59 per equity share of Rs.10 each.
He said currently L&T holds 95.94 percent stake and Capital International Funds 4.06 percent.
“Post issue, the promoter’s (L&T) dilution will be around 17 percent,” he said.
The issue opens on July 27 and closes on July 29.