×
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

Bain Capital acquires 10% stake in L&TFH

Buys through two separate deals for over Rs 1,300 cr
Last Updated 21 September 2015, 18:09 IST

Bain Capital, one of the world’s leading private, alternative asset management firms, with approximately $70 billion in assets under management, has acquired around 10 per cent stake in L&T Finance Holdings (L&TFH) through two separate deals for over Rs 1,300 crore.

The board of directors of L&TFH approved a preferential allotment and warrants to BC Investments VI and BC Asia Growth Investments (collectively referred to as Bain Capital) respectively, subject to approval of shareholders.

The company has proposed to issue 9.56 crore shares and warrants at Rs 74 per share amounting to an infusion of Rs 707.86 crore in the company and constituting around 5.27 per cent of the post-issue equity share capital of the company on a fully diluted basis, L&TFH said.

As per the deal, L&TFH has issued 3.18 crore equity shares at a price of Rs 74 per share, amounting to an aggregate of Rs 235.59 crore and constituting around 1.75 per cent of the post issue equity share capital on a fully diluted basis to BC Investments VI.

L&TFH has also issued 6.38 crore warrants at a price of Rs 74 per warrant, amounting to an aggregate of Rs 472.27 crore and constituting around 3.51 per cent of the post issue equity share capital on a fully diluted basis to BC Asia Growth Investments, L&TFH said.
The warrants may be exercised by Bain Capital within a period of 18 months from the allotment date or accelerated after six months from the date of allotment based on the company’s capital requirement, L&TFH added.

In another deal, Bain Capital acquired nearly over 8.6 crore shares in L&TFH via bulk deal worth over Rs 602 crore. As per the details available on NSE, Citigroup Global Markets Mauritius acquired 8.6 crore shares in L&T Finance Holdings at a price of Rs 70 per share.
On the other hand, Larsen & Toubro, the promoter of L&T Finance Holdings, sold 8.52 crore shares in L&TFH at a price of Rs 70 per share. According to sources, Citigroup was the banker to the deal and bought the shares on behalf of Bain Capital.

L&TFH is a financial holding company offering a diverse range of financial products and services across the corporate, retail and infrastructure finance sectors, as well as mutual fund products and investment management services, through its wholly owned subsidiaries, viz., L&T Finance, L&T Infrastructure Finance Company, L&T Investment Management, L&T Capital Markets, L&T Housing Finance, FamilyCredit and L&T FinCorp.

ADVERTISEMENT
(Published 21 September 2015, 18:09 IST)

Follow us on

ADVERTISEMENT
ADVERTISEMENT