L&T Finance files draft prospectus with NSE, Sebi

L&T Finance files draft prospectus with NSE, Sebi

New Delhi: Financial services firm L&T Finance Ltd, an arm of engineering and construction firm Larsen and Toubro Ltd, has filed a draft prospectus with the National Stock Exchange (NSE) and the Securities and Exchange Board of India (Sebi) for a proposed public offer of five million secured, redeemable, non-convertible debentures (NCDs).

The company said on Thursday the NCDs will have a face value of Rs1,000 each, aggregating to Rs500 crore, with an option to retain over-subscription of up to Rs500 crore for issuance of additional NCDs. The NCDs are proposed to be listed on NSE.

The proceeds will be used by the company for lending and investments, to repay its existing loans and for its business operations, including capital expenditure and working capital requirements.

Chief financial officer Y.M. Deosthalee said the company also planned to enter the general insurance business. “It’s on the drawing board and will take around six months more."

He said the Larsen and Toubro group had decided to focus on manufacturing, and technology and financial services to complement its construction business. He said it was working towards ensuring that manufacturing and services segments contributed 25% and 15% of revenues, respectively, with construction accounting for the remaining 60%.

The company expects to grow by about 50% in the financial services segment this year, and earn a revenue of around Rs12,000 crore.

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