L&T Finance Holdings Ltd said on Friday its deal to sell its West Asian wealth management business to InCred Capital has been terminated after the buyer couldn’t receive regulatory approvals to complete the transaction.
The financial services arm of engineering conglomerate Larsen & Toubro Ltd didn’t give any other details in a stock-exchange filing.
L&T Finance had announced the deal in November last year. The deal involved InCred Capital, the wealth and asset management unit of non-bank lender InCred Financial Services, acquiring L&T Capital Markets (Middle East) for Rs 18 crore plus cash.
L&T Finance had expected the sale within 10 months, subject to receiving regulatory approvals.
The announcement had come months after L&T Finance in August last year agreed to sell the domestic wealth management arm to General Atlantic-backed IIFL Wealth Management. At the time, the latter had said it would buy L&T Capital Markets for Rs 230 crore, plus cash and equivalent.
Mumbai-based InCred Financial, backed by formed Deutsche Bank co-CEO Anshu Jain, had launched operations in January 2017. The firm disburses four types of loans -- personal, education, home and SME (small and medium enterprise).
In April last year, the company raised Rs 600 crore in a Series A funding transaction led by Dutch development bank FMO. US-based asset manager Moore Strategic Ventures, Elevar Equity and early backer Alpha Capital also invested.
In 2016, InCred Financial Services had raised Rs 550 crore from a bunch of investors including Jain, former Deutsche Bank senior executive Bhupinder Singh, Manipal Group’s Ranjan Pai and Alpha Capital.
