L&T Shortlists 6 Dealers For ₹3000 Crore Rights Issue

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Six retail dealers has been shortlisted by L&T Finance, an NBFC division of Larsen and Toubro, for its ₹3000 crore rights issue. This is also to secure its capital structure.

The shortlisted bankers include Citibank, UBS, HSBC, Credit Suisse, Motilal Oswal and Axis Capital. The company seems to keep its assets. Later on, added banks will be accepted.

The issue is expected to set in motion in January 2021. The given information was provided by some sources which stands for its namelessness. When L&T Finance and the six shortlisted bankers were asked about the issue, they refused to give a statement. The company’s panel acknowledged the issue on November 09, 2020.

In the past 3 months, its share price has increased by 31%. Other details including the issue date, combined price and entitlement ration would be decided sooner or later.

Through right issues, M&M Finance have elevated ₹3089 crores and Shriram Transport Finance lifted ₹1,500 crores. Through QIP route, ICICI Bank, HDFC Ltd and Axis Bank jointly elevated about ₹40,000 crores.

One of the working commission of the Reserve Bank of India issued several revolutionary proposals to look over the holding and organizational design of private sector banks. The commission also proposed the transformation of huge NBFCs into banks.

Dealers consider this proposal as supportive to huge NBFCs fostered by large business services who are now anticipating to become universal banks.

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