L&T Finance NCD 2019 – Upcoming NCD Issues in India

L&T Finance NCD 2019: L&T Finance Limited, one of India’s largest financial service company is issuing the NCDs (Non-Convertible Debentures) for investment from March 06, 2019 to March 07, 2019. L&T Finance Limited belongs to the Kolkata-based L&T Group which is among the top business conglomerate in India. It is the brand name of L&T Finance Holding Limited which is a BSE and NSE listed company registered with RBI as a Non-Banking Financial Company – Core Investment Company (NBFC – CIC).


l&t finance ltd ncd issue 2019

L&T Finance NCD 2019 – Issue Details

Type of Issue Fixed Price Issue Non-Convertible Debentures
Issuer L&T Finance Limited
Issue Opens March 06, 2019
Issue Closes March 07, 2019
Coupon Rate (ROI) Up to 9.35%
Face Value Rs 1,000 Per NCD
Minimum Order Quantity 10 NCDs (Rs 10,000)
Issue Size Rs 5,000 crore
Listing BSE & NSE

L&T Finance NCD 2019 – Objects of the Issue

According to the L&T Finance Limited, following are the objects of the L&T Finance NCD 2019 issue:-

  • To meet the purpose of further lending, financing, refinancing the existing debts. Minimum 75% of the raised capital through this issue will be utilized for this purpose.
  • A maximum of 25% of the raised capital through this issue will be utilized for the general corporate purpose. The general corporate purpose may include capital expenditure, expenses on renovations, expenses on strategic initiatives by the company etc.

L&T NCD Issue 2019 – Ratings of the Issue

Two rating agencies have given the following ratings to the L&T NCD Issue 2019:-

  • CARE Ratings Limited: This rating agency has given its rating as CARE AAA / (Outlook) Stable
  • India Ratings: This agency has rated this issue as IND AAA / (Outlook) Stable

About L&T Finance Limited

L&T Finance Limited is a leading NBFC – CIC company in India which is a part of L&T Group. The group started the financial services business in the year 1994. The financing business of this group has been categorized into three categories – rural, wholesale and housing. The rural business of this company includes farm equipment finance, two-wheeler finance, and microloans. The wholesale business comprises infrastructure finance, supply chain finance, and structured corporate finance. However, the supply chain finance business was transferred to Centrum Financial Ltd earlier this financial year. The housing loan service includes loans against properties and real estate finance. 

The various financial operations of this company are spread across the country with 225 branches in 220 cities. To operate their microloan business, the company has established 114 meeting centres in 275 districts across 14 states of India. The company operates its business with 17,998 employees. As on September 30, 2018, the total adjusted loans and advances outstanding of the company is Rs 45,83,549.48 lakh. The total income of the company stands at Rs 3,36,777.20 lakhs.

The key strengths of L&T Finance Limited are their significant presence across their diversified business, strong capabilities of appraisal, structuring and syndication, their robust framework for risk management, strong support from brand name etc. The company is promoted by L&T Finance Holdings Limited. 

Company Financials

Click here to see the financial summary of the company.

Company Contact Details

Address: Brindavan, Plot Number-177, Chhatrapati Shivaji Terminal Road, Kalina, Santacruz (East),  Mumbai – 400 098.

Telephone: +91 – 22 – 6212 5000

Website: www.ltfs.com

L&T Finance NCD 2019 – Lead Managers to the Issue

This L&T Finance NCD 2019 issue is being managed by the following financial services companies:-

  1. A. K. Capital Services Limited
  2. Axis Bank Limited
  3. Edelweiss Capital Limited
  4. Trust Investment Advisor Private Limited
L&T Finance NCD 2019 – Registrar to the Issue

Link Intime India Private Limited

L&T Finance NCD 2019 – Debenture Trustee

Catalyst Trusteeship Limited

L&T Finance NCD 2019 – Associated Risks

Following are the risks associated with the investment into L&T Finance NCD 2019:-

  • Funding: Any possible breakdown in the source of funding or increment in the cost of funding.
  • Competition: Possible inability to operate effectively in the competitive industry.
  • Profitability: Risk of maintaining the profit level due to cost and interest rate variations.
  • NPA: Non-payment or default by customers on borrowings.
  • Changes in Industry: Any adverse development in the finance industry may affect performance.
  • Sectoral Trends: As the company operates in many sectors, any downtrend in any of the sector is risky.
  • Trends of Borrowers: As the company focuses on a variety of borrowers, any downtrend among the borrowers is risky.
  • Changes in laws and regulations
  • Non-compliance of observations made by the regulatory authorities.
  • Credit risk associated with the unsecured loans sanctioned by the company.
  • Any possible decline in the value of the secured assets of the company.
  • Many others – please refer to the tranche of the issue.
L&T Finance NCD 2019 – Eligible Investors

According to the company, the following are eligible to apply for L&T Finance NCD 2019:-

  1. Category I Investors: These are the institutional investors such as scheduled commercial banks, public financial institutions etc.
  2. Category II Investors: Under this category, non-institutional investors including corporates, societies, cooperative banks, trusts etc are considered.
  3. Category II Investors:  Investors in these categories are known as High Net-Worth Individuals which include resident Indian individuals, HUFs, etc.
  4. Category IV Investors: This category of investors is known as retail individual investors.

L&T Finance NCD 2019 – Prospectus

Please read the draft prospectus for detailed information of L&T NCD Issue 2019 issue.

Click here to read the tranche 1 prospectus of the issue and the shelf prospectus of the L&T Finance Limited.

Disclaimer: This post is just information about the scheme. It does not give any advice or recommendation. Investment in securities is subject to market risk. Please read the offer document carefully before investing. It is also advised to consult your financial advisor of necessary suggestions. 

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Tags: Debenture, Upcoming NCD Issues 2019, L&T Finance NCD 2019

 

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