Marquee private equity investor Capital International is leading the race to invest Rs 400 crore, or roughly $100 million, for less than 5% stake in L&T Finance Holdings, which is set for an initial public offering (IPO) possibly within three months.
Capital International is in advanced talks with L&T Finance after the company firmed up valuation expectations for the upcoming IPO, sources directly familiar with the development said. L&T Finance, a subsidiary of the $10-billion engineering and construction giant Larsen & Toubro, wants to raise Rs 1,700 crore from the public issue as early as July.
It is not clear whether the prevailing bearish sentiments following the Greece crisis would delay the IPO, but the share placement with capital International is expected to stay on track. “The response from investor community is positive with L&T pedigree and valuation being the attractive features,” said a source involved with the process. A senior L&T executive said that the company was in discussions with a couple of funds for pre-IPO stake sale. The deal will be finalized after the company files the updated prospectus, including the annual financial statements with market regulator Sebi, which would be done soon.
Source: Times of India