Capital International Backs Larsen & Toubro

Private equity fund Capital International has put 3.3 billion rupees ($75 million) into a unit of Indian engineering conglomerate Larsen & Toubro, ahead of the unit’s initial public offering, Reuters reported. L&T Finance Holdings filed in March for an IPO of up to 17.5 billion rupees ($392 million). Of that, it planned to raise 4 billion rupees through a pre-IPO placement.

(Reuters) – Indian engineering conglomerate Larsen & Toubro said its unit L&T Finance Holdings had raised 3.3 billion rupees ($75 million) through a share placement to U.S. private equity fund Capital International, ahead of an initial public offering.

L&T Finance sold 60 million shares at 55 rupees each, its parent said on Thursday in a statement to the stock exchange.

In March, L&T Finance had filed documents with the markets regulator for an up to 17.5 billion rupees ($392 million) IPO, of which it planned to raise 4 billion rupees through a pre-IPO placement.

L&T Finance Holdings is the holding company for the financial services business of the group and operates through four units that manage the mutual fund, asset financing, infrastructure financing and working capital funding businesses.

Capital International manages $3.7 billion under five emerging markets private equity funds.

In 2010, Indian firms raised a total of $8.56 billion through IPOs — the highest since 2005, ThomsonReuters data showed, helped by a surge in foreign inflows from overseas investors seeking broader exposure to Asia’s third-largest economy.

HSBC , Citigroup , JM Financial , Barclays Capital , and Credit Suisse are the arrangers to the L&T Finance offer.

For a pipeline of Indian IPOs, see . ($1 = 44.48 Indian rupees) (Reporting by Prashant Mehra; editing by Malini Menon)