L&T Finance Holdings finalizes divestment of mutual fund business
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L&T Finance Holdings, a leading non-banking financial institution in India, has announced the completion of the divestment in its mutual fund business. The funds generated through this transaction will strengthen the company’s balance sheet to support growth and innovation in the retail lending sector.
L&T Finance Holdings finalizes divestment
L&T Finance Holdings is a leading financial company in India. The company provides access to a wide range of financial products and services. It provides these services through its wholly-owned subsidiaries. The company has completed the sale of the mutual fund unit to HSBC Asset Management Private Limited.
The company has received around INR 3,484 crores from the consideration of the sale and received a surplus cash balance of around INR 764 crores in L&T Investment Management Limited. According to the definite documents, the latter is the asset manager to L&T Mutual Fund.
The funds raised from the transaction will go toward strengthening the company’s balance sheet. These funds will support the company’s growth and innovation within its retail lending unit. This move will be part of the stated Lakshya 2026 objective to become a leading digital retail finance company.
The Managing Director and CEO of L&T Finance Holdings Limited, Dinanath Dubhashi, said that the sale of the mutual fund business would equip the company with the much-needed resources to focus on the retail market.
“The sale of the mutual fund business provides solid impetus to our pace of retailisation, where the retail portfolio mix today stands at 58% of our total loan book. We believe that along with retailisation, a customer-focused approach, and continuing with our chosen ‘Right to Win’ businesses, we will create value for all our stakeholders,” Dubhashi added.
Increased focus on the retail business
The company will now be focusing on its retail business unit. The company has witnessed an incredible performance in its retail business. The company’s recently released financial results showed that the quarterly disbursements came in at INR 10,238 crores, which was an 84% increase year-over-year.
On the other hand, the Retail Finance book of the company also reported significant growth of 27% YoY. This result came amid the company reporting record-high quarterly disbursements. The significant growth in this retail business could be the key reason the company is paying high attention to the space.
