L&T Finance has completed the Merger of three Subsidiaries with Itself

By Consultants Review Team Monday, 04 December 2023

L&T Finance Holdings (LTFH), an NBFC, stated on Monday that it has finalized the merger of three subsidiaries with itself for "superior governance" and expansion.

Following the merging of L&T Finance Limited, L&T Infra Credit Limited, and L&T Mutual Fund Trustee Limited, the company's lending operations have been consolidated under a single firm, LTFH.

The proposed merger was approved by the boards of the three companies in January, and the process was completed after receiving approvals from shareholders, creditors, and regulatory authorities such as the Reserve Bank of India (RBI), the National Company Law Tribunal, the Securities and Exchange Board of India, and stock exchanges.

"It gives me great pleasure to announce that the merger was completed ahead of schedule and with all necessary approvals in place." "This merger is one of the key strategic initiatives that we have undertaken in line with the 'right structure' strategy that our company has been implementing over the last seven years, with the number of NBFCs decreasing from eight to one," said Dinanath Dubhashi, managing director and managing director of LTFH.

The benefits of the merger, according to LTFH, include improved governance and controls, liability management, the opportunity to give a higher return to shareholders, seamless compliance and adherence to the RBI's scale-based requirements, and improved operating efficiency.

"After carefully considering market dynamics, internal synergies, and a vision for sustained growth, the decision to merge two lending entities with the same NBFC - Investment & Credit Company registrations and one non-operating entity with LTFH was made." We believe that the combination will open up new opportunities for growth, innovation, and long-term success. All of these advantages would result in superior governance, which would provide long-term value for all stakeholders, according to Dubhashi. At 11:15 a.m. on the National Stock Exchange, LTFH was up 3.20 percent at Rs 154.20.


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