Larsen and Toubro Finance to raise Rs 3,000 crore, Rs 2000 crore from parent firm

L&T Finance Holdings will be raising Rs 3,000 crore through a preferential allotment to the parent L&T and from qualified institutional investors.

"The board has approved issuing equity shares up to Rs 3,000 crore through a preferential issue to Larsen & Toubro and through qualified institutions placement," the company said in a statement.

The statement further said of the total amount up to Rs 2,000 crore will come from the parent and the remaining Rs 1,000 crore from the QIP.

"The issue of equity shares through a combination of QIP and preferential allotment is being undertaken to enable the company to diversify its investor base and with an intention to maintain L&T's shareholding," the company said.

The capital will be used for various purposes, including to fund business growth, strengthening capital adequacy and general corporate purposes, it added.

Last week the company had reported a 42 per cent spike in the December quarter net at Rs 384 crore driven by increase in revenue which rose from Rs 2,162 crore to Rs 2,701 crore.

Led by the housing loan book, which grew 49 per cent to Rs 17,193 crore, its overall assets grew 23 per cent to Rs 75,963 crore. The rural finance book also jumped 48 per cent to Rs 14,109 crore.

Gross non-performing assets ratio also improved from 9.01 per cent to 5.49 per cent.

The L&T Finance counter closed more than 2 per cent down at Rs 172.50 crore on the BSE whose benchmark Sensex shed 0.19 per cent today.