Allots Rs. 52 crore of Tier II subordinated NCDs on private placement at 8.20% p.a
L&T Finance has allotted 52 subordinated, unsecured, rated, listed, redeemable NCDs of face value Rs. 1,00,00,000 each, totalling Rs. 52,00,00,000, on a private placement basis on September 29, 2026.
- Total Amount Raised
- Rs. 52,00,00,000
- Coupon Rate
- 8.20% p.a.
- Maturity Date
- July 01, 2036
- Number of NCDs Allotted
- 52
- Face Value Per NCD
- Rs. 1,00,00,000
What happened
L&T Finance, a non-banking lender, raised money by issuing debentures (a form of borrowing) to selected investors rather than to the public. This is called a private placement.
Key terms
- Instrument: subordinated, unsecured, rated, listed, redeemable, non-convertible debentures
- Number allotted: 52 debentures
- Face value: Rs. 1,00,00,000 each
- Total raised: Rs. 52,00,00,000
- Coupon: 8.20% p.a., first coupon on July 01, 2027 and annually thereafter
- Coupon amount per debenture: 8,20,000.0000 rupees each year
- Original tenor: 3653 days; residual tenor: 3563 days
- Maturity/redemption: July 01, 2036, at Rs. 1,00,00,000 per NCD
- Listing: proposed on NSE's Negotiated Trade Reporting Platform under New Debt Market
Issue structure
The offer had a base issue size of Rs. 50,00,00,000 with an option to retain oversubscription of up to 250 debentures, a green shoe of up to Rs. 250,00,00,000, together aggregating up to Rs. 300,00,00,000. The amount actually allotted was Rs. 52,00,00,000.
Why it matters
These are raised as subordinated debt for inclusion as Tier II Capital, which supports the lender's capital base for lending. Being unsecured and subordinated means no charge is created over the company's assets and these holders rank behind senior lenders. If the company delays coupon or principal payment, additional interest of 2% p.a. over the coupon rate is payable for the defaulting period.
For equity shareholders, this is debt fund-raising and does not dilute shareholding, as the debentures are non-convertible.
Also from L&T Finance
L&T Finance to hold investor/analyst conference call on 16 October 2026 for Q2FY2026-27 performance and strategy update
6 Oct 2026
Business update: retail disbursements estimated ~Rs. 24,000 crores, retail book ~Rs. 1,34,500 crores for Q2FY2026-27
3 Oct 2026
Board meeting on 15 October 2026 to consider and approve unaudited results for quarter and half year ended 30 September 2026
1 Oct 2026
More numbers
- Number of NCDs allotted52 (Fifty-two)
- Face value per NCDRs. 1,00,00,000
- Aggregate nominal value allottedRs. 52,00,00,000
- Coupon rate8.20% p.a.
- Annual coupon per NCD8,20,000.0000
- Base issue sizeRs. 50,00,00,000
- Green shoe optionRs. 250,00,00,000
- Total issue size aggregating up toRs. 300,00,00,000
- Original tenor3653 days
- Residual tenor3563 days
- Additional interest on default2% p.a.
- Redemption price per NCDRs. 1,00,00,000
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