L&T Finance Limited, formerly known as L&T Finance Holdings Limited, has successfully raised Rs 1,050 crores through the issuance of non-convertible debentures (NCDs). This move demonstrates the company's strategic approach to capital raising and debt management.

Key Details of the NCD Issuance

Coupon Payment Schedule

The first coupon payment is scheduled for November 10, 2025, with subsequent annual payments. Here's a breakdown of the coupon payment schedule:

Security and Default Provisions

The debentures are secured by an exclusive first ranking charge through hypothecation over identified fixed deposits and standard receivables of the issuer. The security coverage is equivalent to 1 time the principal amount and coupon outstanding.

In the event of a payment default, L&T Finance will be liable to pay an additional interest of 2% per annum over the coupon rate for the defaulting period.

Implications and Outlook

This successful NCD issuance by L&T Finance Limited indicates the company's ability to attract institutional investors and leverage debt markets for its funding needs. The competitive coupon rate of 7.2190% suggests a favorable credit perception of the company in the market.

For investors, these NCDs offer a fixed income opportunity with a tenure of just over three years, backed by the reputation of the L&T Group. The listing on the NSE is expected to provide liquidity to the investors.

As the financial services sector continues to evolve, such debt issuances play a crucial role in providing companies like L&T Finance with the capital needed for growth and expansion.

L&T Finance , a prominent player in the Indian financial services sector, has reported significant growth in its retail business for the second quarter. The company's performance highlights its strong position in the retail lending segment and indicates positive momentum in consumer credit demand.

Key Highlights

Robust Retail Disbursements

L&T Finance announced that its retail disbursements reached ₹18,850.00 crore in Q2. This represents a substantial year-on-year growth of 25%, indicating strong consumer demand and the company's effective market penetration strategies.

Expanding Retail Loan Book

The company's retail loan book stood at ₹1,04,500.00 crore at the end of the quarter. This figure marks a 17% increase compared to the same period in the previous year, showcasing L&T Finance's consistent growth in its retail lending portfolio.

Implications for L&T Finance

The robust growth in both retail disbursements and the loan book suggests that L&T Finance is successfully executing its retail-focused strategy. This performance could potentially lead to improved financial metrics for the company, including revenue and profitability, in the coming quarters.

Market Context

The strong growth in L&T Finance's retail business may be indicative of broader trends in the Indian financial services sector, potentially signaling increased consumer confidence and economic activity. However, it's important to note that this growth should be viewed in the context of overall market conditions and competitor performance.

As L&T Finance continues to focus on its retail segment, investors and market observers will likely keep a close eye on the company's ability to maintain this growth trajectory while managing asset quality and operational efficiency.