L&T Infrastructure Debt Fund in advanced talks to divest around 49% stake

L&T Infrastructure Debt Fund Ltd (L&T IDF) is in an advanced stage of discussion with a string of investors, including an Indian state-run bank, a US bank and multilateral agencies, to divest 49 per cent equity stake which would reduce L&T group’s overall holding and strengthen its international credit standing, according to a report by Mint citing a senior company official.

The fund, which was launched in October 2013, is expecting to obtain approval for the same from the Reserve Bank of India and Foreign Investment Promotion Board by October this year, Shiva Rajaraman, chief executive at L&T IDF, told the paper.

L&T IDF currently has an equity capital of Rs 300 crore, based on which, the deal could be pegged at around Rs 150 crore.

So far, it has disbursed Rs 800 crore for seven road projects and is looking to sanction nearly Rs 1,500 crore by the end of 2014-15.

At present, L&T Infrastructure Finance, the sponsor of the fund, owns nearly 48 per cent equity holding, while the rest 52 per cent is being held by different units of the L&T group.

L&T Infrastructure Finance and L&T Finance Holdings are expected to hold 51 per cent stake in the fund jointly, after the stake sale. The stake dilution will not lead to any fresh infusion of funds into the fund.

An arm of a global bank is expected to hold 25-29 per cent stake, the PSU bank to own around 10 per cent and the multilateral agency will hold 10-15 per cent.

(Edited by Joby Puthuparampil Johnson)

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