L&T Finance Holding IPO

Investors can subscribe to the initial public offer of L&T Finance Holding (L&TFH). L&TFH, promoted by Larsen and Toubro, is a holding company for two fully owned non-banking finance companies (NBFCs) — L&T Infrastructure Finance and L&T Finance. Strong parentage, diversified and high quality loan book, superior interest spreads and sustainable demand in various segments of presence make it a good candidate for investment.

It has announced a price band of Rs 51-Rs 59 for its IPO– the first from L&T group since 1950– which will hit the market on July 27 to raise Rs 1,245 crore.

Price Band :Rs. 51 to Rs. 59

Opening Date :July 27th,2011

Closing Date :July 29th, 2011

Minimum Application :100

Multiples :100

99.9 per cent of L&T Finance is owned by the parent Larsen & Toubro. L&T started NBFC in 2005 for Infra funding. L&T Finance has grown over 30 per cent CAGR since 2005.

At Rs 59 (upper end of the price band), the valuations are at 2.2 times the consolidated FY-11 book, post-infusion. Based on sum-of-the-parts valuation, the issue price seems to offer a 11 per cent upside over the next one year.

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Category: IPO, Stock Market