The board of directors of the company at their meetings held on November 4, 2020, had already approved the offer and issuance of fully paid-up equity shares of the company for an amount not exceeding Rs 3,000 crore by way of a rights issue to the eligible equity shareholders of the Company as on the record date.
As on December 31, 2020, Larsen & Toubro (L&T), the promoter held 63.65 per cent stake in L&T Finance Holdings. Institutional investors held 14.63 per cent holding, followed by individual shareholders (13.68 per cent) and foreign companies (4.77 per cent). Bc Asia Growth Investments and Bc Investments Vi were holding 3.18 per cent and 1.59 per cent stake, respectively, the shareholding pattern data shows.
“For October-December quarter (Q3FY21), the company has reported healthy disbursements at Rs 107 billion (up 12.7 per cent yoy/51 per cent qoq) on the back of a strong recovery in rural and infra segments. However with regularization of repayments, AUM growth remained weak. Combined margins (NIMs + fees) surged to around 739 basis points, backed by a decline in cost of funds and an increase in cross sell activities,” analysts at Emkay Global Financial Services said.
The management preferred to remain cautious on the provisioning front by enhancing ECL provisions in stage 1 and 2 assets while maintaining macro prudential provisions and Covid-19 provisions intact. Total buffer provisions (above GS3 requirement) stand at around 2.4 per cent of AUM, indicating adequately resilient balance sheet, the brokerage firm said with hold rating on the stock.
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