L&T Fin to raise Rs 500 cr more

L&T Finance, the financial services arm of Larsen & Toubro (L&T), plans to raise around Rs 500 crore more through debt after its ongoing Rs 500-crore non-convertible debenture (NCDs) issue gets over.

The company was looking at options such as long-term bank loans, among others, to raise the fund, said Suneet K Maheshwarim, chief executive officer, L&T Infrastructure Finance, on the sidelines of a press meet here on Thursday.

The balance sheet size of the company as on September 2009 was Rs 6,200 crore, which could go up to around Rs 6,800 crore by the end of the current financial year, said GK Shettigar, assistant vice-president (treasury) of the company.

It has already raised Rs 3,000 crore in the current financial year, excluding the current NCD issue.

“This financial year, we have already raised Rs 3,000 crore, excluding the present issue. By the end of this year, we will raise a total of about Rs 4,000 crore through debt,” said Shettigar.

L&T Finance is a wholly owned subsidiary of L&T Capital Holdings, which, in turn, is 99.99 per cent owned by L&T.

The capital adequacy ratio of the company is 15.60 per cent and has a network of 77 branches across the country.

The company is also looking at expanding its business lines and is giving serious push to the corporate finance segment, according to Maheshwarim.

At present, about 38 per cent of the total assets is under corporate finance and the rest under retail finance.