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L&T Cap likely to sell Dubai Wealth business

The wealth book is estimated to be about $200-250 million which may be valued between 2 and 5 percent of the book size.

, ET Bureau|
Nov 14, 2019, 09.31 PM IST
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MUMBAI: L&T Capital is likely to sell its Dubai wealth management business to Mumbai-based non-banking finance company InCred Capital as it prunes non-core business activities to focus on lending activities It already sold its domestic unit to IIFL group.

The wealth book is estimated to be about $200-250 million which may be valued between 2 and 5 percent of the book size, said two people with the direct knowledge of the matter.

Back in August, IIFL Wealth Group acquired L&T Finance Holdings’ wealth management business that provided services in the local market. The Dubai business caters mostly to non-resident Indians residing in Middle East.

Compared with its local wealth management book sold to IIFL, Dubai book is not so large. “The move will definitely help L&F Finance trying to emerge in its new avtar,” one of the persons cited above told ET.

L&T Finance and InCred did not reply to ET’s email query.

“We have decoupled balance sheet growth from business growth. We will be the first NBFC to do this,” dinanath Dubhashi, Managing Director & CEO, L&T Finance had said a few months ago. “Our faith is in areas that we are in — renewables, roads refinance and transmission.

InCred is now making a foray into Asset & Wealth Management, and Investment Banking through InCred Capital with an aim to establish a “Global Indian platform”.

In the June quarter earnings, Larsen Finance had said it was looking to focus on core businesses likes rural lending, housing finance and infra finance, and may enter consumer loans.

Earlier, InCred Capital too acquired Reliance Wealth with about Rs 3,500 crore of assets under management. It also reportedly decided to launch a $100mm Credit Fund.

The latest proposed buyout along with Reliance Wealth, with about 3,500 crore of assets under management (AUM), would strengthen InCred's entry into the wealth management industry.

A month ago, Dutch development bank FMO invested $35 million investment in InCred.

InCred was founded by Bhupinder Singh, a former banker, in 2016 as a “tech enabled new age financial institution”. InCred Retail has an asset book of over 2,000 crores. It got into consumer lending in 2016 and small business lending in 2017.
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