LTFNSEL&T Finance LimitedMediumNeutral
Announced Thu, 26 Jun · 16:18 IST

L&T Finance Limited has informed the Exchange regarding allotment of 22500 Senior Secures Rated Listed Redeemable Non Convertible Debentures on June 26, 2025

Fund Raising View source PDF

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

L&T Finance Limited has allotted 22,500 Senior Secured Rated Listed Redeemable NCDs on a private placement basis on June 26, 2025. Each NCD has a face value of Rs. 1,00,000, bringing the total issue size to Rs. 225 Crores. The base issue size was Rs. 150 Crores with a green shoe option of up to Rs. 350 Crores (total potential issue Rs. 500 Crores). The NCDs carry a zero coupon rate but will be redeemed at Rs. 1,25,274.9476 per NCD on September 21, 2028 (tenor of 1,183 days), implying an effective yield of around 7% per annum. The NCDs are secured by an exclusive first-ranking charge on identified fixed deposits and/or standard receivables of the company. They are proposed to be listed on the NSE's New Debt Market (NTRP).

Likely market impact

This is a routine private placement of debt by L&T Finance to raise Rs. 225 Crores at an effective yield of ~7% for a ~3.2-year tenor. There is no equity dilution for shareholders, and the pricing suggests a reasonable borrowing cost given current market rates, so the impact on shareholders is neutral.