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| L&T Finance's NCD issue opens at premium |
| Press Trust of India / Mumbai Sep 24, 2009, 14:20 IST |
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L&T Finance's non-convertible debentures (NCD) today opened at a premium of Rs 29 over the issue price of Rs 1,000 after its listing on the National Stock Exchange here.
The financial services arm of engineering and construction major Larsen & Toubro raised Rs 1,000 crore through its first-ever public offer of secured redeemable non-convertible debentures.
The debentures touched Rs 1,029.90 in opening trade, up by 2.9 per cent on the NSE. Later, it rose to Rs 1,042.50.
"Each one of the instruments — there were four of them in the five, seven and ten-year category — had been subscribed to quite well. We've got about 60 per cent of the subscription coming in the seven and ten year instrument," Larsen and Toubro, Executive Vice President, Financial Services, N Sivaraman, told reporters here.
The funds raised through the NCD issue will be used by the company for its various financing activities including lending and investments and for its business operations, including capital expenditure and working capital requirements.
Sivaraman added the company consciously did not offer a three-year instrument to evade any conflict with its other lines of institutional credit.
L&T Finance had offered 5 million secured redeemable NCDs of the face-value of Rs 1,000 each aggregating to Rs 500 crore with an option to retain over-subscription up to Rs 500 crore aggregating to a total of Rs 1,000 crore.
The coupon rate is 10.24 per cent per annum and the annualised yield is 10.50 per cent.
It had offered various investment options and maturity periods range from 5-10 years and the annualised yield for ten year debenture worked out to 10.50 per cent.
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