Shares of L&T Finance were climbing on Thursday amid reports that a major private equity player was looking to sell its entire stake in the non-banking financial company.

What Happened: Bain Capital is preparing to completely exit its investment in L&T Finance by selling its remaining stake through a block deal, Moneycontrol reported, citing sources.

The sources added that several entities associated with Bain Capital, holding around 3.54% stake in L&T Finance, are poised to dilute their holdings through this transaction. As of June 1, based on L&T Finance’s market capitalisation, this stake is valued at around ₹1,500 crore.

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A source revealed that the proposed block deal had already been initiated, with BNP Paribas acting as the advisor. One of the sources called it a “clean-up trade”.

The publication reported that the floor price for the shares was set at ₹169.17 per share, representing a 0.85% discount to the last closing price of ₹170.62 per share.

In September 2023, Bain Capital had previously sold a 2.82% stake in L&T Finance for ₹910 crore.

Price Action: L&T Finance’s share price was up 4.27% at ₹177.90 near the start of trade on Thursday. Over the past month, L&T Finance’s stock has appreciated 8.49%.

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