New Delhi: Larsen & Toubro’s financing arm, L&T Finance is aiming to raise up to Rs 1,000 crores by issuing non-convertible debentures. The base size of the issue is Rs 500 crores with an option to retain oversubscription of up to Rs 500 crore, a statement released by L&T Finance said on Tuesday.
This would be the second tranche of sale in which the company would be offering bonds maturing in 3, 5 and 8 years and offering a coupon of 8.48-9.05 percent, it said.
“Net proceeds of the issue will be utilised for on- lending, financing, and refinancing the existing debt of the company and for general corporate purposes,” the statement said.
L&T said that the issue opens on April 8 and closes on April 18 with an option for early closure or extension. It will also be listed on the stock exchange.
The non-banking finance company had raised a total of Rs 2,286.06 crore last month in the first tranche when it had expected to raise Rs 1,500 crores. Edelweiss, AK Capital, Axis Capital and True Investment Advisors are the lead managers to the issue.
Construction arm bags large orders
The news came on a day when L&T announced that its construction arm had bagged a number of large orders from multiple clients for power transmission and distribution business in the domestic and overseas markets. In India, L&T secured orders to lay underground cable in certain industrial areas and towns to improve the reliability of power supply, the company said, and added that orders have also been won for solar powered irrigation systems.