L&T to offload 4.67% stake in Federal Bank for Rs 350 cr

L&T to offload 4.67% stake in Federal Bank for Rs 350 cr Mumbai: L&T Finance will offload its entire 4.67 percent stake in the private sector lender Federal Bank for about Rs 300-350 crore.

L&T Finance, which held 79.95 lakh shares or 4.67 percent stake in Federal Bank at the end of July-September quarter, would exit the banking entity, according to investment banking sources.

The shares would be sold through open market transactions in a day or two.

Investment banking sources said that L&T Finance Holdings Ltd, the NBFC arm of the engineering giant Larsen & Toubro, would fetch around Rs 300-350 crore from the deal.

The share-sale would be manged by Citigroup.

Shares of Federal Bank Monday closed at Rs 468.65 on the BSE, up 1.46 percent from the previous close.

According to market sources, the sale is likely to take place at zero percent to 4.2 percent discount to today's price on the exchanges.

L&T Finance, the financial services arm of the engineering conglomerate Larsen & Toubro, has put a price range of Rs 450-469.75 per share for the block deal. The company will sell its 4.68 percent, or 7.9 million shares, the sources said.

Both Federal Bank and L&T Finance refused to comment saying they have no information as it could be a block deal through the exchanges.

The transaction will be carried out through block deals on the NSE tomorrow, the sources added.

Citigroup India, which is the sole book-runner to the deal, refused to comment citing regulatory constraints.

The Federal Bank stake was picked by L&T Finance parent L&T over a period of time prior to 2010, and thus the prices at which it bought these shares could not be ascertained.

PTI