L&T Finance builds up

Last month the news on L&T Finance was that consulting firm, Bain Capital was close to acquiring a minority stake in the company and the deal was valued at $350 million. This is yet to happen.

And today, the news is that Warburg Pincus, the US based PE fund is looking at buying a 25% stake in the company and currently they are said to be negotiating on the pricing. L&T Finance is said to be asking for a price of Rs.83/share and this means the 25% stake sale deal is valued at Rs.3574 crore. Market cap of L&T Finance currently stands at Rs.11,900 crore.

Once again, this is unconfirmed news but with persistent smoke rising, surely the company is indeed looking at raising funds by selling stake. Currently the parent company, L&T holds 72.95% stake, down from 74.97% stake in Q3FY15.

Not surprisnlgy, the stock is currently the top gainer on the BSE, up over 4% at Rs.69.15. Its 52-week high is at Rs.72.95.