Mumbai: Private-equity firm Bain Capital will raise Rs 750 crore by selling 2.12%, or about a fifth of its holding, in L&T Finance through a block deal, fetching about 150% returns on its two-year-old investment in the non-banking finance company.

The PE firm currently owns 10.72% in L&T Finance. Bain had bought the stake at around Rs 75 a share, and is looking to sell the holding at Rs 180-185 apiece.

“Bain Capital has given the mandate to Citibank to sell 2.12% stake in L&T Finance at Rs 180-185 a share,” said a source close to the development. “The transaction will help Bain monetise a part of its investment.” L&T Finance, Citibank and Bain Capital could not be reached for comments.

Bain Capital had bought 10.72% in the NBFC arm of India’s biggest engineering company L&T in two transactions, including an issue of preferential shares and warrants, and in open deals. Earlier this month, Bain and other investors bought a 9% stake in the country’s third-largest private-sector lender, Axis Bank.

Bain Capital is the only PE investor in L&T Finance, which is 64.21%-owned by the engineering parent. The company is focusing on improving its return on equity, reducing expenses and cutting down on a defocused portfolio. Its profit climbed 45% in the second quarter.