L&T Finance waits for right market condition to launch IPO
L&T Finance has put its plans for an initial public offer on the back burner till market conditions stabilise, a top company official said.
By PTI |
MUMBAI: L&T Finance has put its plans for an initial public offer (IPO) on the back burner till market conditions stabilise, a top company official said today.
"We have filed revised prospectus (for IPO) and, hopefully, we will get clearance in next few days. Our plans remain intact, but we are waiting for stability as the market is (currently) very volatile," L&T Chief Financial Officer Y M Deosthalee told reporters here.
"We would wait for stable market conditions before launching the offer."
L&T Finance plans to raise around Rs 1,500 crore through the IPO and will use the proceedings to expand business by launching new products and services, as well as enter new lines of businesses.
L&T has no plans to sell its electrical business, the company's Chairman, A M Naik, said.
The company will create a separate unit for the business, he said, adding reports about the infrastructure major's plan to sell the unit were "rumours" spread by rivals.
Meanwhile, the top engineering conglomerate, which is streamlining its organisation to manage growth in a better way, said it will spin-off some divisions into subsidiaries as they mature, but did not comment on any stake sale plans.
L&T is reorganising its businesses into nine empowered verticals or operating units in addition to its six existing subsidiaries. The nine companies will act like 'independent companies' (ICs) going forward.
L&T has 128 subsidiaries, including several JVs and SPVs. Our steering committee is monitoring the functioning of ICs. Sixteen non-executive directors have already joined and five more are expected to join by July 1, Naik said.
"We have filed revised prospectus (for IPO) and, hopefully, we will get clearance in next few days. Our plans remain intact, but we are waiting for stability as the market is (currently) very volatile," L&T Chief Financial Officer Y M Deosthalee told reporters here.
"We would wait for stable market conditions before launching the offer."
L&T Finance plans to raise around Rs 1,500 crore through the IPO and will use the proceedings to expand business by launching new products and services, as well as enter new lines of businesses.
L&T has no plans to sell its electrical business, the company's Chairman, A M Naik, said.
The company will create a separate unit for the business, he said, adding reports about the infrastructure major's plan to sell the unit were "rumours" spread by rivals.
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Meanwhile, the top engineering conglomerate, which is streamlining its organisation to manage growth in a better way, said it will spin-off some divisions into subsidiaries as they mature, but did not comment on any stake sale plans.
L&T is reorganising its businesses into nine empowered verticals or operating units in addition to its six existing subsidiaries. The nine companies will act like 'independent companies' (ICs) going forward.
L&T has 128 subsidiaries, including several JVs and SPVs. Our steering committee is monitoring the functioning of ICs. Sixteen non-executive directors have already joined and five more are expected to join by July 1, Naik said.
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