Microfinance Focus, July 26, 2011: Exactly one year after the much hyped IPO (Initial Public Offering) of SKS microfinance, Non-Banking Financial Company L&T Finance Holdings Ltd. which has significant exposures in microfinance sector is all set to raise up to Rs.1, 245 crore by way of IPO on Wednesday, July 27.

With a 24.4 crores issue size, the IPO’s opening price band is Rs 51-59. Bidding date for anchor investors is July 26th and the Issue will close on July 29th.

The poor performance of SKS Microfinance in recent months may dampen the investor’s interest in L&T’s IPO. The company is reported to have outstanding loan portfolio of around 200 crores in Andhra Pradesh in microfinance. As of March 31, 2011, L&T Microfinance business accounted for 5 percent of its total loan book.

JM Financial Consultants Private Limited, Citigroup Global Markets India Private Limited, HSBC Securities and Capital Markets (India) Private Limited, Barclays Securities (India) Private Limited and Credit Suisse Securities (India) Private Limited are the lead managers for the IPO

L&T Finance Holdings 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 direct and indirect wholly-owned subsidiaries.