IIFL Wealth buys wealth management biz of L&T Finance Holdings

L&T Finance Holdings Limited sell its investment in L&T Capital Markets, a wholly-owned subsidiary, to IIFL Wealth Finance Limited. The division provides wealth management services in India.

IIFL Wealth Finance Limited may acquire L&T Capital Markets Limited either solely or jointly with a its wholly-owned subsidiary of IIFL Wealth Management Limited. IIFL Wealth Finance Limited provides financial services including loans against securities, capital market andIPO financing, and loans against property to corporate and high networth customers.

L&T Finance Holdings Limited (LTFH) has entered into a definitive agreement with IIFL Wealth Group to acquire 100 per cent equity shares of L&T Capital Markets Limited (LTCM). The company provides wealth management services for individual as well as institutional clients, managing client assets worth more than Rs. 24,000 crore.

The total consideration for the transaction is Rs. 230 crore and the cash and cash equivalent balance of LTCM. The consideration is linked to the actual cash position of LTCM and it may be adjusted based on the cash position of the company on the date of completion.

On Wednesday, the stock of LTFH closed at Rs. 94.80 per share, down by 3.51 per cent on NSE.