Saturday, December 25, 2010

IPO ANALYSIS: L&T FINANCE HOLDINGS LIMITED – HIGH PEDIGREE – INVEST.


This company / group needs no introduction. The company is promoted by promoted by Larsen & Toubro Limited (L&T),  one  of  the  leading  companies  in the country,  with  interests  in  engineering,  construction,  electrical  and electronics manufacturing and services,  information  technology and financial services.

L& T Finance  Holding  company  offers  a  diverse  range  of  financial  products  and  services  across  the corporate, retail and infrastructure finance sectors, as well as mutual fund products and investment management services, through the direct and indirect wholly-owned subsidiaries. The Company is registered with the RBI as an NBFC-ND -SI.

The company is headquartered in Mumbai, and has a presence in 21 states in India. As at August 31, 2010, we had 715 points-of-presence across India, comprising 103 branch offices, 221 meeting centers.

The network of offices has been established to cater to the growing business needs of the diverse customer  base,  which  includes  individual  retail  customers  as  well  as  large  companies,  banks,  multinational companies  and  small-  and  medium-enterprises,  and  to  provide  them  with  satisfactory  customer  service according to their varying requirements.

The  operations  are  arranged  into  four  business  groups,  being  the  Infrastructure  Finance  Group,  the  Retail Finance Group, the Corporate Finance Group and the Investment Management Group. 

The total income of the Infrastructure Finance Group for Fiscal Year 2010 was Rs. 4,504.23 million which accounted for 31.63% of the total income.  The total loans and advances outstanding of the Infrastructure Finance Group as at March 31, 2010 were Rs. 42,884.99 million and total disbursements for Fiscal Year 2010 were Rs. 37,955.14 million. The wholly-owned  subsidiary, L&T Finance Limited  ,  conducts  the  retail  finance  business and  the  corporate  finance  business.



ISSUE DETAILS



ISSUE SIZE


RS 1500CR

PRICE BAND

-

IPO GRADE

5 BY ICRA

BRLMs

JM FINANCIALS, CITI GROUP, HSBC SECURITIES, BARCLAYS SECURITIES, CREDIT SUISSE AND EQUIRUS CAPITAL





STRENGHTS:

  • Diversified and balanced mix of high growth businesses.
  • Strong distribution network, with a presence throughout the country.
  • Experienced management team and employees with a proven track record of establishing and growing new lines of business.
  • High quality loan portfolio comprising the funding of mainly income-generating assets and activities.
  • Good financial and capital position, as well as access to multiple sources of capital.
  • Strong parentage and brand equity of L&T

4 comments:

  1. You've just copy pasted some stuff available from available website of L&T and is expecting your investors to follow this.

    PPL this company is a total N0-N0.

    Dont invest in this. Avoid making losses. Make informed decisions.

    ReplyDelete
  2. That is taken from DRHP, not from website. FirstChoice reiterates that the IPO and pricing will be good. You are entitled to your opinion. IPO from that stable will not disappoint the investors. Fundamentally, one of the best NBFC in the country. There fore, RBI has given SI status.

    ReplyDelete
  3. Well, does not matter what the source is but I am hopeful of this IPO doing well as rating are 5/5.

    ReplyDelete
  4. This IPO will do very well not because of its rating, but of its pedigree, business model and the management.

    ReplyDelete