markettrend766
10-09-2009, 07:58 AM
L&T Finance, an NBFC and wholly owned subsidiary of engineering and construction major Larsen and Toubro, said that it is yet to apply to SEBI to enter the asset management segment.
The NBFC is looking at expanding its financial services business and the mutual fund industry is of great interest to the company.
“We are looking at entering the mutual fund business mainly through the organic route but we might also look at acquisitions as well”, said Mr. N Sivaraman, Executive Vice-President (Financial Services) at L&T Finance.
He added that they have a few options for acquisitions on the table and are currently evaluating them. “Once we zero in on a worthy candidate we will apply for regulatory approval to start our AMC business.”
About news reports of L&T Finance looking at acquiring DBS Cholamandalam AMC, Mr Sivaraman remained non-committal.
When asked about the kind of AMC L&T Finance is looking to acquire, Mr. R Shankar Raman, Executive Vice- President (Finance), said that they will be looking at a tidy and manageable AMC which is not that large in size. “There are many AMCs looking at consolidating now”, he added.
L&T Finance’s total loan asset is Rs 5,400 crore and it is looking to report a 25 per cent year-on-year rise in loans in the next fiscal. Mr Sivaraman also added that they are evaluating their foray into the insurance business. He also ruled out any possibility of an IPO in the current fiscal.
NCD subscription
The company’s Rs 1,000-crore NCD, which closed on September 4, received subscriptions worth Rs 1,930.84 crore. The retail category received subscriptions of Rs 453 crore against the Rs 175 crore reserved for them.
The HNI category was subscribed for Rs 881 crore against a reservation of Rs 150 crore. And QIBs, which had a reservation of Rs 175 crore, was subscribed for Rs 597 crore.
Mr Sivaraman said that most all the investors who applied for the NCD till September 3 will be allotted shares. Those who have applied on September 4 will be allotted shares on a pro rata basis.
The NBFC is looking at expanding its financial services business and the mutual fund industry is of great interest to the company.
“We are looking at entering the mutual fund business mainly through the organic route but we might also look at acquisitions as well”, said Mr. N Sivaraman, Executive Vice-President (Financial Services) at L&T Finance.
He added that they have a few options for acquisitions on the table and are currently evaluating them. “Once we zero in on a worthy candidate we will apply for regulatory approval to start our AMC business.”
About news reports of L&T Finance looking at acquiring DBS Cholamandalam AMC, Mr Sivaraman remained non-committal.
When asked about the kind of AMC L&T Finance is looking to acquire, Mr. R Shankar Raman, Executive Vice- President (Finance), said that they will be looking at a tidy and manageable AMC which is not that large in size. “There are many AMCs looking at consolidating now”, he added.
L&T Finance’s total loan asset is Rs 5,400 crore and it is looking to report a 25 per cent year-on-year rise in loans in the next fiscal. Mr Sivaraman also added that they are evaluating their foray into the insurance business. He also ruled out any possibility of an IPO in the current fiscal.
NCD subscription
The company’s Rs 1,000-crore NCD, which closed on September 4, received subscriptions worth Rs 1,930.84 crore. The retail category received subscriptions of Rs 453 crore against the Rs 175 crore reserved for them.
The HNI category was subscribed for Rs 881 crore against a reservation of Rs 150 crore. And QIBs, which had a reservation of Rs 175 crore, was subscribed for Rs 597 crore.
Mr Sivaraman said that most all the investors who applied for the NCD till September 3 will be allotted shares. Those who have applied on September 4 will be allotted shares on a pro rata basis.