L&T Finance Limited has informed the Exchange about Intimation for exercise Of call Option and Notice of Call Option to Debenture Holders
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L&T Finance Limited is exercising a call option on 1,000 unsecured, subordinated, perpetual Tier-I non-convertible debentures originally issued by L&T Infrastructure Finance Company Limited in March 2016 (now part of L&T Finance after the 2021 merger). The total outstanding principal is Rs. 50 crores, carrying a coupon of 9.50% per annum. The company has received RBI approval (dated February 12, 2026) to exercise the call option, and the redemption will take place on March 18, 2026, with March 2, 2026 set as the record date. On the call date, the company will pay back the full principal along with the annual coupon to the debenture holders.
This is a routine, pre-scheduled redemption of legacy perpetual debt instruments (originally issued with a 10-year call option) and reflects the company's healthy liquidity position. It is not a distress event; rather, it is the company choosing to retire a legacy, high-cost instrument from its books. For shareholders, the impact is neutral to mildly positive as it simplifies the capital structure.