L&T Finance down 5%

L&T Finance Holding is currently the top loser on the BSE, down 5% at Rs.75.25, while yesterday it had hit a new 52-week at Rs.88.25.

This turnaround in moods from high to sell came in on the back of news that to comply with SEBI’s stipulation of 25% public holding, parent company, L&T, which has a 81.50% stake in L&T Finance, plans to bring down the stake to 76.6%. To do this, the company plans to sell 83.3 million shares through a qualified institutional placement on Friday. The share sale will happen at Rs.70/share, which is at a 11.6% discount over Thursday’s closing price of Rs.79.2/share. And this discounted pricing for the QIP is what has irked the market.

Even after this sale, the stake remains over 75%, which means before August’14, once again we could see the company offering more shares for sale.