L&T Finance Holdings completes the divestment of its Mutual Fund business

L&T Finance Holdings Limited, one of India's leading nonbanking financial companies, today announced the conclusion of the sale of its mutual fund business to HSBC Asset Management (India) Private Limited. It has (i) received ~INR 3,484 crores (equivalent of USD 425 million) as consideration for the sale; and (ii) also realised surplus cash balance of ~INR 764 crores in L&T Investment Management Limited, the asset manager to L&T Mutual Fund (LTIML) pursuant to the definitive documents.

The proceeds from this transaction will be deployed primarily in strengthening the balance sheet which will help drive growth and innovation in the retail lending businesses, in line with the stated Lakshya 2026 goal of becoming a top-class, digitally enabled, retail finance company.

Mr. Dinanath Dubhashi, Managing Director & CEO, L&T Finance Holdings Limited, said "The sale of the mutual fund business provides solid impetus to our pace of retailisation, where the retail portfolio mix today stands at 58% of our total loan book. We believe, that along with retailisation, a customer-focused approach, and continuing with our chosen 'Right to Win' businesses, we will create value for all our stakeholders."

The retail businesses of the company witnessed robust disbursement momentum in Q2FY23 with the highest ever quarterly disbursements at INR 10,238 crores in Q2FY23, up 84% YoY. The Retail Finance book grew by 27% YoY, on the back of the highest-ever quarterly disbursements, surpassing Q1FY23 levels.

Shares of L&T Finance Holdings Limited was last trading in BSE at Rs. 82.40 as compared to the previous close of Rs. 82.10. The total number of shares traded during the day was 594467 in over 2718 trades.

The stock hit an intraday high of Rs. 83.25 and intraday low of 82.05. The net turnover during the day was Rs. 49187111.00.

Source : Equity Bulls

Keywords

LandTFinanceHoldings INE498L01015 StakeSale MutualFundBusiness HSBCMutualFund