L&T Finance Holdings has concluded the sale of its mutual fund business to HSBC Asset Management (India). It has received Rs 34.84 billion (the equivalent to $425 million) as consideration for the sale, and also realised surplus cash balance of Rs 7.64 billion in L&T Investment Management, pursuant to the definitive documents.
The proceeds from this transaction will be deployed primarily in strengthening the balance sheet which will help drive growth and innovation in the retail lending businesses, in line with the stated Lakshya 2026 goal of becoming a top-class, digitally enabled, retail finance company.
Dinanath Dubhashi, Managing Director & CEO, L&T Finance Holdings, said, “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.”