L&T Finance Holdings Ltd

LT Finance Holdings Ltd. (LTFH) is a financial holding company offering a focused range of financial products and services across rural, housing and wholesale finance sectors, as well as mutual fund products and wealth management services, through its whollyowned subsidiaries, viz., LT Finance Ltd., LT Housing Finance Ltd., LT Infrastructure Finance Company Ltd., LT Investment Management Ltd. LT Capital Markets Ltd. and LT Infra Debt Fund Ltd. LTFH is registered with RBI as a CICNDSI. LTFH is promoted by Larsen Toubro Ltd. (LT), one of the leading companies in India, with interests in engineering, construction, electrical electronics manufacturing services, IT and financial services.LTFH s wholesale finance business comprises infrastructure finance, structured corporate finance and supply chain finance. The company also offers debt capital markets services as part of its wholesale finance business segment. The companys housing finance business comprises home loans and loans against property, and real estate finance. The companys rural finance business comprises farm equipment finance, two wheeler finance and micro loans. LT Finance Holdings Ltd was incorporated on May 1, 2008 as a public limited company with the name LT Capital Holdings Ltd. The company was promoted by Larsen Toubro Ltd as a holding company for their financial services business. In May 15, 2008, the company received the Certificate of Commencement of Business. In March 31, 2009, Larsen Toubro Ltds investment in LT Finance Ltd, LT Infrastructure Finance Company Ltd and India Infrastructure Developers Ltd were transferred to the company and hence, LT Finance Ltd, LT Infrastructure Finance Company Ltd and India Infrastructure Developers Ltd became the wholly owned subsidiaries of the company. In January 20, 2010, the companys wholly owned subsidiary LT Finance Ltd acquired LT Investment Management Ltd (formerly DBS Cholamandalam Asset Management Ltd) and LT Mutual Fund Trustee Ltd (formerly DBS Cholamandalam Trustee Ltd), the trustee company for LT Mutual Fund.In September 1, 2010, the company changed their name from LT Capital Holding Ltd to LT Finance Holdings Ltd.In 2011, LT Finance Holdings total assets crossed Rs 20000 crore mark. During the year, company entered the capital market with its maiden initial public offer. In 2012, LT Finance Holdings total assets crossed Rs 30000 crore mark. During the year, the LT Finance Holdings forayed into housing finance business with the acquisition of Indo Pacific Housing Finance Ltd (IPHF). During the year, LT Finance Holdings mutual fund unit acquired Fidelitys mutual fund business in India. During the year, the company started twowheeler financing with its acquisition of Family Credit, a nonbanking finance company.In 2013, LT Capital Markets was incorporated as a Platform for Wealth Management business. During the year, LT Finance Holdings launched a maiden issue of preference shares.In 2015, LT Finance Holdings total assets crossed Rs 50000 crore mark. During the year, the company raised Rs 708 crore from preferential issue of Equity Shares and Warrants to Bain Capital. In 2016, LT Finance Holdings reoriented its strategy to focus on select products and deliver improvement on Return on Equity (RoE).In 2017, LT Finance Holdings expanded its footprint by commencing Micro loans business in Assam. During the year, its mutual funds business crossed the Rs 50000 crore Assets Under Management (AUM) mark. During the year under review, LT Access Distribution Services Limited, wholly owned subsidiary of the Company was merged with LT Capital Markets Limited, another wholly owned subsidiary of the Company with effect from November 10, 2017.On 8 March 2018, LT Finance Holdings Limited (LTFH) announced that it has completed the preferential allotment to Larsen Toubro Limited (the Promoter), of 10.78 crores equity shares at issue price of Rs. 185.51 per share. Through this issue, the Promoter has infused additional capital amounting to Rs 1999.99 crore demonstrating their belief and commitment to the LTFH growth story. The capital infused by the Promoter will help fund the growth of LTFHs focused lending businesses rural finance, housing finance and wholesale finance, and further strengthen the capital adequacy of the company.On 13 March 2018, LT Finance Holdings Limited (LTFH) announced the successful closure of its Qualified Institutional Placement (QIP) of upto Rs 1000 crore at the issue price of Rs 158.60 per share. The capital raised will be used for business growth. On 20 June 2018, LT Finance Holdings (LTFH) through its subsidiary LT Finance (LTF) announced the opening of its 1000th meeting center in Kolkata, West Bengal, for its micro loans business. Furthermore, the company has launched an app, which would enable seamless customer onboarding by providing instant loan sanctioning. The micro loans business has an endtoend digital platform, embedded with a range of services such as loan sanctioning, group formation, esigning, receipting, risk audits etc.The Company had allotted 6,38,20,990 Warrants with each Warrant convertible into one Equity Share of the face value of Rs 10 each at a price of Rs 74 per Warrant to BC Asia Growth Investments (Investor) on December 18, 2015 on a preferential basis. The Company had received 25% upfront money of total consideration from the Investor at the time of allotment of Warrants and balance 75% was received at the time of exercise of notice for option to convert the Warrants. Pursuant to the said conversion of Warrants, the Company has allotted 6,38,20,990 Equity Shares of face value of Rs 10 each to Investor on May 17, 2017. Further, the Company also allotted 6,30,51,702 Equity Shares of Rs 10 each at an issue price of Rs 158.60 to the eligible qualified institutional buyers on a private placement basis under Chapter VIII of SEBI ICDR on March 15, 2018.During the year 201920, the Company and LT Capital Markets Limited (LTCM), the wholly owned subsidiary of the Company had entered into a Share Purchase Agreement with IIFL Wealth Finance Limited and IIFL Wealth Management Limited, where the Company sold 100% investment in LTCM to IIFL Wealth Finance Limited on April 24, 2020, and accordingly, LTCM ceased to be a subsidiary of the Company. During the year 201920, Company had issued 8,74,10,000 CCRPS of face value Rs. 100 each for cash at par aggregating to Rs. 874.10 Crore on a private placement basis which were subsequently listed on BSE Limited in accordance with the Securities and Exchange Board of India. 1,84,40,000 CCRPS amounting to Rs. 184.40 Crore, which were due for redemption were redeemed by the Company. The Company had infused capital in LT Infrastructure Finance Company Limited and LT Capital Markets (Middle East) Limited during FY 201920.During year 202021, the Company met its funding requirements through issuance of NCDs (private placement basis), CPs, Inter Corporate Deposits (ICDs) and borrowings from banks. The aggregate debt outstanding as on March 31, 2021 was Rs. 79,390.18 Crore. The Companys AAA rating was reaffirmed by all four rating agencies, CRISIL, CARE, India Ratings and ICRA. Also in August 2021, ICRA had upgraded its rating outlook for the Company to AAA / Stable. It secured its first lowcost Sustainability Linked Rupee Loan of Rs. 200 Crore. LT Infrastructure Finance Company Limited (LTIF) and LT Housing Finance Limited (LTHF), the wholly owned subsidiaries of LT Finance Holdings Limited, the holding company were merged with the Company w.e.f. April 12, 2021 by the receipt of Orders from NCLT, Mumbai and Kolkata Bench. Consequent to merger of LT Infrastructure Finance Company Limited with LT Finance Limited, Company has taken steps to convert the IDF NBFC business to an NBFC Investment and Credit Company (NBFC ICC). Accordingly, LT Infra Credit Limited (formerly known as LT Infra Debt Fund Limited) has applied to the Reserve Bank of India (RBI) for conversion to an NBFC ICC.During the year 202122, the Company redeemed 2,50,00,000 NonConvertible Redeemable Preference Shares (NCRPS) amounting to Rs. 250 Crore. Further, it redeemed 7,74,10,000 NCRPS amounting to Rs. 774 Crore. It completed existing Real Estate projects which resulting in repayments / prepayments of over Rs. 3,000 Crore. It launched the Small and Medium Enterprise Loans (SME loans). During the year 202223, 100% of the Paidup Share Capital of LT Investment Management Limited, a WhollyOwned Subsidiary of the Company and the Asset Manager of LT Mutual Fund, was sold to HSBC Asset Management (India) Private Limited on November 25, 2022.