Centrum Financial Services to acquire L&T Finance’s supply-chain lending biz

By Keshav Sunkara

  • 05 Sep 2018
Credit: Pexels

Centrum Financial Services Ltd is set to acquire the Rs 800 crore supply-chain lending business of L&T Finance Ltd, according to a stock-exchange disclosure.

The financial details of the deal, expected to close by year-end, were not disclosed.

Centrum Financial Services, a subsidiary of Mumbai-listed Centrum Capital, offers commercial finance, structured credit, supply chain and real estate finance to small, micro and medium enterprises. L&T Finance, whose supply-chain lending business has a workforce of 50 professionals, and operates out of 16 cities in India, is a unit of L&T Financial Services (legal name L&T Finance Holdings Ltd).

As of 30 June, L&T Financial Services had an overall loan book size of Rs 86,571 crore, comprising of rural, housing and wholesale finance.

"Within the wholesale finance book, L&T Financial Services continues to focus on renewables, roads and transmission sectors, where we have a leadership position," said Virender Pankaj, chief executive of wholesale finance at L&T Financial Services.

Centrum Group has both bought and sold units in recent times.