L and T Finance plans to sell stake in Fed Bank

L&T Finance Holdings, the NBFC arm of infrastructure company Larsen & Toubro Limited (L&T), is reportedly planning to sell its 4.7 per cent stake (7.9 million shares) in private sector lender Federal Bank Ltd, at a price band of Rs 450 and Rs 469.75. The share price of Federal Bank closed at Rs 469.75 on the BSE on Monday.

Sources at both L&T Finance Holdings and Federal Bank declined to comment on the development. L&T Finance Holdings also holds 4.76 per cent shares in another private sector lender, City Union Bank Ltd, according to its latest financial statement. The stake sale is believed to be part of the company’s fund raising plans.

L&T Finance Holdings had acquired FamilyCredit Ltd, a NBFC with presence in auto financing business, for Rs 120 crore in October this year.

L&T Finance Holdings reported a net profit of Rs 143.7 crore for the quarter ended September 30, 2012, a 20 per cent rise over Rs 124 during the corresponding period last year.

L&T Finance Holdings closed at Rs75.25, up by 0.40%, with a volume of 27.80 lakh shares on the BSE.

Fidelity buy completed

L&T Finance Ltd, subsidiary of L&T Finance Holdings Ltd, announced the completion of Fidelity‘s Mutual Fund (MF) business in India on Monday. With this,  L&T Mutual Fund has assets worth Rs 12,800 crore and a base of 9.5 investors across India.

L&T Finance Holdings CMD Y M Deosthalee said, “The decision to acquire Fidelity’s mutual fund business in India was made with an aim to become the best value provider of investment solutions across asset classes. With this acquisition, our fund suite spans the gamut of investment opportunities – equity, fixed income, hybrid, domestic and international funds – and moves us closer to becoming a leading asset management company.”