The infrastructure finance subsidiary of Indian engineering business, Larsen & Toubro Group is likely to launch an initial public offering (IPO) of equity shares worth a total of INR15 billion (€248 million; $332 million) by the end of the year, a source close to the company told Infrastructure Investor.
Currently, the company is in the process of filing a draft document with the Securities and Exchange Board of India (SEBI) and the IPO will hit the markets as soon as it gets approval from SEBI, the source said.
Media reports suggest that the amount raised will be used to fund capital requirements in L&T Finance, the group’s non-banking financial arm, and L&T Infra Finance, a 100 percent subsidiary of the L&T Group that focuses on the infrastructure sector. Reports also suggest that the IPO is being arranged by HSBC, Citigroup, JM Financial, Barclays Capital and Credit Suisse.
Recently, L&T Finance was given Infrastructure Finance Company status by the Reserve Bank of India, enabling it to engage in infrastructure lending at lower cost and on a more favourable basis.