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| L&T Finance to raise Rs 1,000 cr via NCDs |
| BS Reporter / Ahmedabad Jul 29, 2009, 00:49 IST |
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The issue likely to be launched in mid-August
 L&T Finance Ltd, a wholly-owned subsidiary of Larsen and Toubro, has decided to issue non-convertible debentures (NCDs) to raise funds to the tune of Rs 1,000 crore. The financial services and asset management company today filed draft prospectus for the issue.
“The company proposes to raise Rs. 500 crore through NCDs. We also have an option to retain oversubscription of another Rs 500 crore. The issue will probably be launched in mid-August,” said YM Deosthalee, chief financial officer and a member of the L&T board.
“We are targeting retail and other institutional investors such as high networth individuals (HNIs),” he said.
The company’s focus is on construction equipment, finance, equipment leasing and tractor finance. Last year, it forayed into micro-finance. At present, it offers micro-finance services in Andhra Pradesh, Tamil Nadu, Karnataka and Maharashtra and plans to expand these to Gujarat and Rajasthan. L&T Finance has an asset base of Rs. 5,400 crore, while other group company, L&T Infrastructure Projects Finance, has an asset base of Rs 3,000 crore.
“The asset base of the two companies is likely to touch Rs 12,000 crore by the end of this financial year,” he added.
According to Deosthalee, the company aims to start general insurance business on its own. Currently, it offers general insurance products in collaboration with Sundaram Finance.
“The new initiative is still on the drawing board and we hope to firm up things in the next seven-eight months. There will be no joint venture for this business,” he said.
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