Bain Capital exits L&T Finance with major block deal

The exchange filing stated that Bain Capital had a stake of 3.59% before selling all its stocks.

Details of the Transaction

On June 13, Bain Capital offloaded its entire stake in L&T Finance through a block deal, as confirmed by a stock exchange filing from the company.

The global private investment firm, operating through its subsidiaries BC Asia Growth Investments and BC Investments VI Limited, had originally invested in L&T Finance in September 2015.

Shareholdings and Stake

Prior to the sale, Bain Capital held a 3.59% stake in L&T Finance. BC Investments VI Limited subscribed to 31,836,971 equity shares, while BC Asia Growth Investments held 63,820,990 shares.

The exchange filing indicated that the investment agreement, which had been in place since 2015, was now terminated following the complete exit.

Market Impact and Share Performance

Earlier reports from Moneycontrol on June 12 hinted at Bain Capital’s plan to fully exit L&T Finance via the block deal route.

On the day of the transaction, over 88.2 million shares of L&T Finance changed hands in a block deal, leading to a 5.2% rise in the company’s share price. This surge brought the shares to a new 52-week high of Rs 179.

Valuation and Previous Transactions

Based on L&T Finance’s market capitalization at the close of trading on June 1, a 3.54% stake in the firm was valued at approximately Rs 1,500 crore.

This block deal follows a previous transaction in September 2023, where Bain Capital sold a 2.82% stake in L&T Finance for Rs 910 crore.

The complete exit of Bain Capital from L&T Finance marks a significant shift, highlighting the private equity firm’s strategic divestment and the subsequent market response.