Shares of one of India’s leading non-banking financial companies fell over 2 percent to Rs 124.60 per share on Tuesday after US-based private Investment firm Bain Capital sold a 2.8 percent interest in the company. 

At 11:01 a.m., L&T Finance Holdings Ltd shares were trading at Rs 126.45 per share, down 0.24 percent from the previous close price. The company has a market capitalization of Rs 31,364 crore. 

According to the bulk data published by the exchanges, Bain Capital sold a stake in L&T Finance Holdings through its investment companies, BC Asia Growth Investments and BC Investments VI Ltd.BC Asia Growth Investments and BC Investments VI Ltd sold 7 crore shares in eight tranches, for a 2.8 percent stake. 

Shares of L&T Finance Holdings were bought by Axis Mutual Fund, DSP Blackrock Mutual Fund, Bajaj Allianz Life Insurance Company, SBI Life Insurance Company, Lakshmi Capital Investments, Key Square Master Fund LP, and BNP Paribas Arbitrage. 

The shares were sold at an average price of Rs 130 per, for a total transaction value of Rs 910 crore. Bain Capital’s total shareholding through its investment vehicles BC Asia Growth Investments and BC Investments VI Ltd has decreased from 4.04 percent to 1.24 percent following the transaction. 

The Company’s return on equity increased from 5.36 percent in FY22 to 7.54 percent in FY23, while the return on capital employed rose from 10.51 percent to 13.03 percent during the same period. Similarly, the net profit margin has increased to 12.02 percent. 

L&T Finance Holdings’ share has increased by 46 percent in six months and by 50 percent in a year.

According to the latest shareholding pattern, the promoters hold 66.1 percent of the company, while Foreign institutional investors hold 13.9 percent and domestic institutional investors hold 5.29 percent. 

L&T Finance Holdings Ltd is an NBFC that provides a wide range of financial products and services, including farm equipment financing, two-wheeler financing, microloans, consumer loans, home loans, loans against property, and others. 

Written by Omkar Chitnis

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