L&T Finance’s NCD issue opens at premium of Rs29

L&T Finance’s NCD issue opens at premium of Rs29

Mumbai: L&T Finance’s non-convertible debentures (NCD) on Thursday opened at a premium of Rs29 over the issue price of Rs1,000 after its listing on the National Stock Exchange here.

The financial services arm of engineering and construction major Larsen & Toubro raised Rs1,000 crore through its first-ever public offer of secured redeemable non-convertible debentures.

The debentures touched Rs1,029.90 in opening trade, up by 2.9% on the NSE. Later, it rose to Rs1,042.50.

“Each one of the instruments—there were four of them in the five, seven and ten-year category—had been subscribed to quite well. We’ve got about 60% of the subscription coming in the seven and ten year instrument," Larsen and Toubro, executive vice president, financial services, N. Sivaraman, told reporters here.

The funds raised through the NCD issue will be used by the company for its various financing activities including lending and investments and for its business operations, including capital expenditure and working capital requirements.

He said the company consciously did not offer a three-year instrument to evade any conflict with its other lines of institutional credit.

L&T Finance had offered 50 lakh secured redeemable NCDs of the face-value of Rs1,000 each aggregating to Rs500 crore with an option to retain over-subscription up to Rs500 crore aggregating to a total of Rs1,000 crore.

The coupon rate is 10.24% per annum and the annualised yield is 10.50%.

It had offered various investment options and maturity periods range from 5-10 years and the annualised yield for ten year debenture worked out to 10.50 %.