L&T Finance IPO subscribed 0.09 times till 1300 hours on day 1

MUMBAI: The initial public offer of L&T Finance Holdings was subscribed 0.09 times by afternoon on the first day of the issue on Wednesday.

The company's IPO received bids worth 2.02 crore shares till 1300 hours on the first day, as against 21.45 crore shares on offer, as per data available on the National Stock Exchange.

L&T Finance Holdings entered the capital markets with an IPO price band of Rs 51 to Rs 59 apiece. The issue, which opened for subscription today, will close on July 29, 2011.

L&T Finance aims to mop up Rs 1,245 crore from the capital market. The company will issue 21.10 crore shares under the IPO and post-listing, parent L&T's stake in the company would come down to 83 per cent.

At present, parent firm Larsen & Toubro (L&T) holds a 95.94 per cent stake in the company and the remaining 4.06 per cent is held by US-based private equity fund Capital International.

The IPO proceeds would be pumped into five L&T subsidiaries -- L&T Infrastructure Company, L&T Finance, India Infrastructure Developers, L&T Investment Management and L&T Mutual Fund Trustees.

Citigroup, JM Financial and HSBC are the lead managers for the public issue