L&T Finance Holdings, a wholly-owned arm of country's engineering bellwether Larsen & Toubro , on Wednesday said that valuations of its initial public offering (IPO), which has opened for subscription at a price band of Rs 51 to 59 per share, is justifiable as it houses two non-banking finace companies (NBFCs) that have grown in the recent past by approximately 50% year-on-year in the last couple of years.
Fundamentally, YM Deosthalee, CMD, L&T Finance Holdings explained, "The company's earnings were impacted on the back of hawkish provisioning made in 2010, and we need capital as the firm is witnessing rapid growth."
Currently, he added that the company's overall exposure in microfinace business stands at Rs 445 crore, which includes Rs 199 crore in Andhra Pradesh.
Furthermore, Deosthalee elaborated that the compay holds investments in Federal Bank and City Union Bank at book value, and exposure in infra finance is diversified.
Today, the firm received a commitment of Rs 152.7 crore from anchor investors at Rs 56 a share . Earlier, it had raised around Rs 330 crore through private equity from Capital International PE Fund through a pre-IPO placement.
Fundamentally, YM Deosthalee, CMD, L&T Finance Holdings explained, "The company's earnings were impacted on the back of hawkish provisioning made in 2010, and we need capital as the firm is witnessing rapid growth."
Currently, he added that the company's overall exposure in microfinace business stands at Rs 445 crore, which includes Rs 199 crore in Andhra Pradesh.
Furthermore, Deosthalee elaborated that the compay holds investments in Federal Bank and City Union Bank at book value, and exposure in infra finance is diversified.
Today, the firm received a commitment of Rs 152.7 crore from anchor investors at Rs 56 a share . Earlier, it had raised around Rs 330 crore through private equity from Capital International PE Fund through a pre-IPO placement.
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