L&T Finance Holding Ltd. (L&TFH) has announced on 17th July, 2020 that the company has finalized to wrap up its subsidiary in Dubai L&T Capital Markets (Middle East) after the sale plan proposed failed to materialize. In the initial days of July, this year, L&TFH had announced publicly that its share purchase agreement with a NBFC firm forming a part of InCred Group, Proud Securities and Credits Pvt. Ltd., to sell 100% of its shares in L&T Capital Markets (Middle East) had been terminated mutually by the companies.

L&T Capital Markets (Middle East) was a subsidiary owned entirely by the L&TFH which dealt with business of wealth management. When the purchaser applied to RBI to seek its permission to purchase the shares of the capital markets company, RBI on 20TH May, 2020 denied the application saying that it could not be acceded to. According to L&T, LTCM (ME) was not a material subsidiary and amounted to only 0.1% of the company’s total income.
Both the companies were then in search of another way to complete the sale so that they could find a way to stick to the terms of share purchase agreement. When the companies did not arrive a mutually agreed way, they decided to terminate the share purchase agreement on 2nd July, 2020. Subject to this, a meeting was held on 16th July, 2020 wherein a resolution was passed which approved the proposal of winding up of the company (LTCM (ME)) in accordance with laws of UAE.

This proposal was approved voluntarily by the board of the LTCM (ME) at the meeting. This decision comes after the company made it clear that it believed in the moto ‘Right to Win’ and wanted to create value for all the stakeholders. Therefore it had decided that it would withdraw from abroad wealth management and focus on its core business in order to provide maximum return to its stakeholders.