L&T Finance Holdings shares surged over 8 per cent on Tuesday on reports that American private equity fund Warburg Pincus may acquire 25 per cent stake in the financial services arm of Larsen & Toubro.
According to The Economic Times, L&T Finance plans to issue fresh shares to Warburg and utilise the funds to shore up the capital base to expand its business of financing trucks, commercial vehicles and construction equipment.
Cheering the news, shares of the company jumped 8.43 per cent to Rs 72.05.
Around 73.99 lakh shares have changed hands on the Bombay Stock Exchange, against two-week average volume of 6.66 lakh shares.
For the quarter ended March 2015, L&T Finance Holdings registered consolidated net profit of Rs 854.68 crore, up 43.19 per cent, against Rs 596.89 crore last year.