L&T Finance prices IPO near low end of band - Hindustan Times
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L&T Finance prices IPO near low end of band

Reuters | By, Mumbai
Jul 30, 2011 08:49 PM IST

India's L&T Finance Holdings priced its initial public offering (IPO) near low end of the price band today, raising $252 million in a market that has seen fewer new issues so far this year due to weak markets.

India's L&T Finance Holdings priced its initial public offering (IPO) near low end of the price band on Saturday, raising $252 million in a market that has seen fewer new issues so far this year due to weak markets.

The company, a unit of Indian engineering conglomerate Larsen & Toubro , has fixed the issue price at 52 rupees ($1.2) a share, while the price range for the public offering was at 51-59 rupees a share.

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L&T Finance's IPO was covered 5.2 times, and exchange data showed most bids came near the top of the price range. The issue closed on Friday.

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The company was offering 214.51 million shares to raise funds for strengthening its capital base, for lending and for repayment of debt.
Before the launch of the public offering, L&T Finance had raised around $36 million from three cornerstone investors including DSP BlackRock, Malaysia's Khazanah and US private-equity fund Capital International.

It had earlier raised $75 million in a pre-IPO share placement to Capital International.

Indian companies have raised $7.1 billion in equity in the first half of 2011, down 42% from the year-ago period, Thomson Reuters data showed.

India's main stock index in Mumbai is down more than 11% this year, making it one of the world's worst-performing markets.
Several companies have delayed share sale plans, including Oil and Natural Gas Corp , which has been deferring a $2.8 billion offering, and Steel Authority of India , which has delayed a $1.8 billion issue.

HSBC , Citigroup , JM Financial , Barclays Capital , Credit Suisse and Equirus Capital were the arrangers for the L&T Finance offer.

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