L&T Finance Holdings completes merger of 3 of its subsidiaries with itself
L&T Finance Holdings Ltd on Monday announced that it has completed the merger of its three subsidiaries L&T Finance Limited (LTF), L&T Infra Credit Limited (LTICL) and L&T Mutual Fund Trustee Limited, with itself. The company said the merger is effective from December 4 and will create a single lending entity.
"The merger will lead to the creation of a simplified 'Single Lending Entity'; thus, housing all lending businesses under one operating Non-Banking Financial Company," it said in a statement. All of the lending business will now be housed under L&T Finance Holdings Ltd.
The merger was initially approved in January this year, and it had received approval from the Reserve Bank of India (RBI) in March.
"The decision to merge two lending entities with the same NBFC – Investment & Credit Company registrations and one non-operating entity with LTFH was taken after carefully considering market dynamics, internal synergies, and a vision for sustained growth. With the merger, we believe we will be able to unlock newer avenues for growth, innovation, and long-term success. All these benefits would lead to superior governance that would create sustainable value for all stakeholders," said Dinanath Dubhashi, managing director and chief executive officer (CEO) at L&T Finance Holdings Ltd.
"It gives me immense pleasure to announce that the merger has been completed before the envisaged time with all the necessary approvals in place. This merger is amongst the key strategic initiatives undertaken by us in line with the 'Right Structure' strategy that our company has been implementing over the last seven years; with the number of NBFCs reducing from 8 to 1."
The company also announced the appointment of Amresh Kumar as its chief risk officer for two years effective from December 4.
As of 10:30 am, the shares of the company were trading 1.52 per cent in the green at Rs 153.35 apiece on BSE.