Subscribe to Larsen and Toubro Finance Holdings Ltd - Ajcon Global

Incorporated in 1994, Larsen and Toubro Finance Holdings is registered with the RBI as an NBFC- Non-Deposit Taking-Systemically Important (NDSI). It offers diverse range of financial products and services across the corporates, retail and infrastructure finance sectors, mutual fund products and investment management services, through its direct and indirect wholly-owned subsidiaries. The company enjoys strong parentage as it is promoted by Larsen & Toubro Limited ("L&T"), one of the leading companies in India, with interests in engineering, construction, electrical and electronics manufacturing and services, information technology and financial services. The company has established its presence in 23 states in India. As on May 31, 2011, it had 837 points-of-presence across India, comprising 117 branch offices, 269 meeting centers and 37 KGSK centers.

LTFHL's has strong credit ratings from both CARE and ICRA. As on May 31, 2011, company had a CARE rating of AA+ and ICRA rating of LAA+ coupled with strong brand equity enables it to access funds at competitive rates from a wide variety of market participants.

With due consideration to the factors like a) strong parentage and synergies with parent in terms of domain knowledge in infrastructure space b) brand equity, c) diversified loan book, d) robust distribution network, e) strong resource raising ability, access to low cost funds and healthy margins, f) pre ipo placement of shares to MACE CIPEF Ltd. and MACE Ltd. at Rs. 55 per equity share raises confidence on the valuation front, g) highest IPO grade of 5 by CARE and ICRA indicating strong fundamentals, we recommend investors to "SUBSCRIBE" the issue.

Source : Equity Bulls

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