The Hindu Business Line : L&T Finance to raise up to Rs 1,000 cr thru NCD

Mr Y.M. Deosthalee, Chief Financial Officer and Member of the board, Larsen and Toubro Ltd, and Mr N. Sivaraman, Executive Vice-President (Financial Service), at a press conference in Mumbai on Monday. -Paul Noronha

Our Bureau

Mumbai, Aug.17 L&T Finance Company plans to raise Rs 500 crore through a non-convertible debenture issue (NCD). The issue includes an option to retain over-subscriptions of up to Rs 500 crore.

The NBFC’s NCDs carry a coupon rate of 9.51-10.24 per cent, depending on the tenure — five, seven, and 12 years. The issue opens on August 18 and closes on September 14.

While retail investors and qualified institutional buyers have been earmarked 35 per cent each of the total issue size, 30 per cent has been reserved for high net worth individuals (HNIs). The minimum application amount for retail investors is Rs 10,000 and Rs 1,01,000 for HNIs and QIBs.

“Through the issue, we will be adding one more source of funding and broadbasing the investor base,” said Mr Y. M. Deosthalee, CFO, L&T.

The funds raised through the issue will be used to refinance existing loans and to fund the incremental growth in business, said Mr N. Sivaraman, Director, L&T Finance.

SBI Capital Markets, JM Financial Consultants, and Standard Chartered Bank are the lead managers to the issue.

The NCD issue has received ‘AA+’ rating from CARE and ‘LAA+’ from ICRA.

L&T Finance reported a net profit of Rs 99 crore in the financial year 2008-09, against Rs 115 crore in the previous year. The company has a capital adequacy ratio of 16.41 per cent.

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