L&T Finance's NCD issue opens for subscription

L&T Finance Ltd's public offer of secured redeemable non-covertible debentures (NCDs) opened for subscription on Tuesday. The company, promoted by engineering and construction giant Larsen and Toubro Ltd, intends to raise Rs. 1,000 crore through this issue.

As part of its first ever public offer, the financial and asset management company is offering 50,00,000 NCDs having face value of Rs. 1,000 each. "The NCD issue with various investment options and yield on redemption of upto 10.50 per cent closes for subscription on 4 September, 2009", N Sivaraman, executive vice-president (financial services), L&T Finance said here in a press conference today.

The company seeks to raise Rs. 500 crore through this NCD issue and it also has option to retain oversubcription of another Rs. 500 crore.

L&T Finance is targeting retail investors and other instituitional investors such as high networth individuals (HNI). Construction equipment finance, transport equipment finance, rural finance and micro-finance are the major focus areas of the company. "We will continue to finance asset supported business", Sivaraman added.

At present the company has an asset base of Rs. 5,400 crore and its total income stood at Rs. 830 crore as on 31 March 2009.