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| L&T Finance's Rs 1,000 cr NCD issue oversubscribed 3.86 times |
| Press Trust of India / New Delhi Sep 09, 2009, 17:20 IST |
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The public issue of non-convertible debentures (NCDs) of L&T Finance, the financial arm of engineering major Larsen & Toubro, has been oversubscribed by 3.86 times.
Non-convertible debentures are debt papers which cannot be converted into equity.
The company's first-ever public issue of 50 lakh secured redeemable non-convertible debentures worth Rs 1,000 crore has been oversubscribed, L&T Finance said in a statement today.
The issue comprises Rs 500 crore debentures with an option to raise another Rs 500 crore upon over-subscription, aggregating up to Rs 1,000 crore.
The issue, which has various investment options and yield on redemption of up to 10.50 per cent per annum, had started on August 18 and it closed on September 4.
Up to 35 per cent of the issue size was reserved for the qualified institutional buyers, 35 per cent for the retail investors and the rest 30 per cent for non-institutional investors. In all categories the issue got fully subscribed.
The company proposes to list debentures on the National Stock Exchange (NSE) on or after September 17.
The funds raised through this issue will be used for various financing activities, including lending and investments, repaying existing loans and deployment in business operations, the company said.
The lead managers to the issue are SBI Capital Markets, JM Financial Consultants Pvt Ltd and Standard Chartered Bank.
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