The board of L&T Finance Holdings Ltd, the financial services arm of construction conglomerate Larsen & Toubro Ltd, on Monday approved a plan to raise as much as Rs3,000 crore through a rights issue.
“The board approved the offer and issuance of fully paid-up equity shares of the company for an amount not exceeding Rs3,000 crore by way of a rights issue to the eligible equity shareholders of the company as on the record date (to be determined and notified subsequently),” the company said in an exchange filing.
Mint reported on 19 August that L&T Finance had begun discussions with advisers on a potential Rs2,000 crore-Rs3,000 crore fundraise.
With its plans to raise equity capital, L&T Finance joins its many peers in the financial services industry that have raised funds in recent months. Several banks and NBFCs have raised capital to bolster their balance sheets against the disruptions caused by the covid-19 pandemic, as well as to tap opportunities that may arise out of the pandemic and its economic fallout.
These include leading private sector lenders ICICI Bank, HDFC Ltd and Axis Bank which together have raised around Rs39,000 crore in equity capital through their respective QIPs (qualified institutional placement).
NBFCs such as Mahindra Finance and Shriram Transport Finance have raised Rs3,089 crore and Rs1,500 crore through their respective rights issue.
news Source:- livemint