Monday, 15 July 2024
Stock Market

Morgan Stanley purchases a stake in L&T Finance; shares rise 8% in two days

  • L&T Finance shares rise 8% over two days after Morgan Stanley‘s acquisition.
  • L&T boosts stake, increasing ownership to 66.4%.
  • FY24 net profit up 43%, driven by strong net interest margins and fees.

Shares of L&T Finance Holdings have surged by 8% in the last two trading sessions following a major stake acquisition by Morgan Stanley Asia. This acquisition was part of a larger block deal involving Bain Capital affiliates and BNP Paribas, totaling 8.82 crore shares.

L&T, the holding company, purchased an additional 1.25 crore shares, raising its stake to 66.4%. This move reflects the parent company’s continued confidence in L&T Finance‘s growth prospects.

Morgan Stanley Stake Purchase Boosts L&T Finance Stock

L&T Finance Holdings Limited saw an 8% increase in its stock price over the last two days, largely driven by Morgan Stanley Asia’s significant stake acquisition from Bain Capital affiliates and BNP Paribas. This acquisition, along with other buyers like Axis and Religare, has spurred market confidence and boosted the share price.

L&T, the holding company, also increased its stake by 0.50%, purchasing 1.25 crore shares for Rs 213 crore, raising its total ownership to 66.4%. The company recently announced the termination of an investment agreement with BC Asia Growth Investments, resulting in a board member’s departure.

Other significant buyers in the block deal included DSP Blackrock, Goldman Sachs (Singapore), Axis Mutual Fund, and Religare Mutual Fund, highlighting broad institutional interest in L&T Finance.

Financially, L&T Finance reported a 43% increase in net profit for FY24, amounting to Rs 2,320 crore, driven by healthy net interest margins and fees. This strong performance underscores the company’s robust financial health and growth trajectory.

L&T Finance’s recent stock surge, bolstered by strategic acquisitions and strong financial performance, reflects growing investor confidence and sets a positive outlook for the company’s future.

“This acquisition reflects our continued confidence in L&T Finance’s growth prospects.”

— L&T representative

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