L&T Finance Limited has formally notified stock exchanges about its decision to exercise the call option on subordinated perpetual debt instruments worth ₹50 crores, with redemption scheduled for March 18, 2026. The announcement was made on February 13, 2026, in compliance with SEBI regulations.

Debenture Details and Background

The non-convertible debentures were originally issued by L&T Infrastructure Finance Company Limited on March 18, 2016, which later merged with L&T Finance Limited as part of a corporate restructuring exercise in 2021. The issue comprised 1,000 unsecured, non-convertible debentures with a face value of ₹10,00,000 each, totaling ₹50 crores.

Call Option Exercise and Regulatory Approval

The debentures were structured as subordinated perpetual Tier-I debt instruments with put/call options exercisable after a minimum period of 10 years, subject to Reserve Bank of India approval. The company received the necessary RBI approval on February 12, 2026, enabling the exercise of the call option.

The debentures were listed on the Wholesale Debt Market segment of BSE Limited effective March 28, 2016, and were issued on a private placement basis under the Information Memorandum dated March 18, 2016.

Redemption Process and Timeline

L&T Finance Limited has established a clear timeline for the redemption process, with specific dates set for record-keeping and payment purposes.

Debenture holders will receive the principal outstanding amount along with the annual coupon at 9.50% per annum on the redemption date. The company has clarified that it will not be responsible for any claims related to securities sold or transferred after the specified record date.

Regulatory Compliance

The announcement was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and other applicable regulations including SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021, and the SEBI master circular dated January 30, 2026.

Formal notices have been dispatched to debenture holders as per the beneficiary position dated February 06, 2026, serving as official notification for the call option exercise. The redemption represents the completion of the 10-year minimum period requirement for exercising the call option on these perpetual debt instruments.

L&T Finance Limited has completed the allotment of 6,10,900 equity shares to employees under its Employee Stock Option Plan (ESOP). The allotment was approved by the company's ESOP Allotment Committee on February 01, 2026, following the exercise of stock options by eligible employees.

ESOP Allotment Details

The ESOP Allotment Committee approved the share allotment through a resolution passed by circulation, with formal approval received at 4:04 P.M. on February 01, 2026. All the allotted shares fall under the company's established employee incentive program.

Share Characteristics and Rights

The newly allotted equity shares will carry the same rights and privileges as existing equity shares of the company. These shares will rank pari-passu with the current equity shares in all respects and will be entitled to any dividends declared by the company going forward.

Regulatory Compliance

The company has informed both the National Stock Exchange of India Limited (NSE) and BSE Limited about this allotment in accordance with Regulation 30 read with Para A of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The communication was signed by Apurva Rathod, Company Secretary and Compliance Officer.

Company Information

L&T Finance Limited, formerly known as L&T Finance Holdings Limited, operates from its registered office in Mumbai. The company maintains its commitment to employee participation through structured stock option schemes that align employee interests with shareholder value creation.