L&T Finance closes Tranche 2 issue of NCDs on the same day it opened

PW Bureau

The second tranche of L&T’s public issue of secured non-convertible debentures was closed as the NCD received bids of Rs 3,238.48 crore

Mumbai: L&T Finance has closed the second tranche of its public issue of secured non-convertible debentures (NCDs) on Day 1 itself after it was oversubscribed. The company said that the NCD received bids of Rs 3,238.48 crore. It included a base issue size for an amount of Rs 500 crore with an option to retain oversubscription up to Rs 500 crore, aggregating up to Rs 1,000 crore.

All categories oversubscribed

All categories of the base issue size were oversubscribed  institutional, non-institutional, HNIs (high net worth individuals) and retail investors. An official statement released by the company said, “The NCD issue is another step in the company’s overall strategic intent of building a retail liability franchise and will further add to the diversity of the borrowing mix in the already diversified liability profile.” These NCDs have been rated as ICRA AAA (stable), CARE AAA / Stable and IND AAA / Stable.

Net proceeds to be used for onward lending

The company also said that about 75 percent of the proceeds of the second tranche of the issue will be utilised for onward lending, financing, refinancing the existing indebtedness of the company. The rest will be used for general corporate purpose.

Edelweiss Financial Services, A K Capital Services, Axis Bank and Trust Investment Advisors were the lead managers to the issue. The first tranche of the issue was also closed sooner than expected after it was oversubscribed.