L&T Finance Holdings completes merger of its three subsidiary companies with itself
New Delhi: L&T Finance Holdings (LTFH) on Monday announced the completion of the merger of its subsidiaries L&T Finance (LTF), L&T Infra Credit (LTICL), and L&T Mutual Fund Trustee with itself. The company said that this will lead to better governance and growth.
According to the press release, with this merger, all the loan businesses will come under one entity i.e. LTFH. With this, the listed lending entity will become a non-banking finance company (NBFC) offering multiple products and services under the L&T Finance brand.
LTFH Managing Director (MD) and Chief Executive Officer (CEO) Dinanath Dubhashi said, ‘The merger has been completed ahead of schedule with all necessary approvals. He said, ‘This merger is one of the key strategic initiatives taken by us in line with the ‘Right Structure’ strategy that our company has been implementing for the last seven years and has now reduced the number of NBFCs from 8 to 1. ‘
What will be the benefit from the merger?
LTFH said the benefits of the merger include better governance and control, liability management, the ability to provide better returns to shareholders, seamless compliance with RBI’s scale-based rules and regulations as well and improved operations. Efficiency included.
When was the merger approved?
It is noteworthy that the boards of the three companies had approved the proposed merger in January and the process was completed after getting approval from shareholders, creditors, and regulatory authorities, including the Reserve Bank of India (RBI), and the National Company Law Tribunal (NCLT). , Securities and Exchange Board of India (SEBI) and stock exchanges.