L&T Finance Holdings to get Rs 708 cr from Bain Capital

L&T Finance Holdings , the subsidiary of engineering & construction major Larsen & Toubro, will get Rs 708 crore from Bain Capital by issuing preferential shares and warrants. “The board of directors in today’s meeting has approved a preferential allotment of equity shares and warrants to BC Investments VI and BC Asia Growth Investments (collectively both called as Bain Capital) respectively, subject to approval from shareholders and relevant statutory / regulatory authorities,” the non-banking finance company said in its filing to exchanges. It is proposed to issue an aggregate of 9,56,57,961 equity shares and warrants at Rs 74 per share/warrant, amounting to an infusion of Rs 707,86,89,114 in the company. Bain Capital will hold around 5.27 percent of post issue equity share capital of the company on a fully diluted basis. L&T Finance will issue 3,18,36,971 equity shares (1.75 percent equity) at Rs 74 per share to BC Investments VI and 6,38,20,990 warrants (3.51 percent) at Rs 74 per warrant to BC Asia Growth Investments. The company is selling shares/warrants at a 8.8 percent premium to Friday’s closing price of Rs 68 apiece. Post this transaction, total equity base will expand by 5.5 percent with a total of 9.56 crore shares. Currently it is 172 crore outstanding shares, which will be increased to 181.6 crore shares. L&T (promoter) has 72.93 percent shareholding in the company as of June 2015, which could be fallen below 70 percent post this transaction. The warrants may be exercised by Bain Capital within a period of 18 months from allotment date or accelerated after 6 months from date of allotment based on the company’s capital requirement, L&T Finance said. The approval from shareholders of the company for preferential allotment of equity shares and warrants is proposed to be sought through a postal ballot, it added.