L&T Finance NCD issue oversubscribed 3.86 times

The public issue of non-convertible debentures (NCDs) of L&T Finance, the financial arm of engineering major Larsen & Toubro, was oversubscribed by 3.86 times. Non-convertible debentures are debt papers which cannot be converted into equity. This was the company's first-ever public issue of 50 lakh secured redeemable non-convertible debentures. The issue comprised Rs5bn debentures with an option to raise another Rs5bn upon over-subscription, aggregating up to Rs10bn. The issue, which has various investment options and yield on redemption of up to 10.5% per annum, started on August 18 and it closed on September 4. Up to 35% of the issue size was reserved for the qualified institutional buyers (QIBs), 35% for the retail investors and the rest 30% 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 and Standard Chartered Bank.