US-based private equity fund Capital International is likely to remain the second largest shareholder

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in L&T Finance Holdings even after the non-banking finance company's Rs 1,245 crore initial public offer.

Capital International currently holds a 4.06 per cent stake in L&T Finance, acquiring shares aggregating to Rs 330 crore at Rs 55 apiece during pre-IPO placement ahead of the issue.

Following pre-IPO placement, parent firm Larsen & Toubro (L&T) holds 95.94 per cent in L&T Finance Holdings, while the US-based PE firm has a 4.06 per cent stake.

L&T Finance Holdings is coming out with a Rs 1,245 crore public offer on June 27, which would be among the few large issues this year in a volatile market. The company has fixed a price band of 51-59 per share.

L&T Finance would issue 21.10 crore shares under the IPO and post listing, parent L&T's stake in the company would come down to 83 per cent.

Following listing, QIB holdings in the company, including Capital International, would aggregate to 9.08 per cent and corporate and retail buyers would together hold over 6 per cent, according to a SMC Global research report.

L&T Finance, which is a non-deposit taking NBFC, has market capitalisation of over Rs 1 lakh crore, SMC Global said.

The IPO proceeds would be pumped into five L&T subsidiaries -- L&T Infrastructure Company, L&T Finance, India Infrastructure Developers, L&T Investment Management and L&T Mutual Fund Trustees.

Citigroup, JM Financial and HSBC are the lead managers for the proposed public issue.