L&T Finance allots ₹235 cr NCDs at 7.79% coupon rate
L&T Finance Limited completed the allotment of ₹235 crore in non-convertible debentures via private placement on August 20, 2026. The senior, secured instruments bear a coupon rate of 7.7942% per annum and mature on June 27, 2031. The debentures are secured by a first-ranking charge on identified fixed deposits and standard receivables, ensuring investor protection. This issuance fulfills part of the company's broader fundraising capacity under its registered limit.
*this image is generated using AI for illustrative purposes only.
L&T Finance Limited allotted ₹235 crore worth of non-convertible debentures (NCDs) on a private placement basis on August 20, 2026. The company issued 23,500 senior, secured, rated, listed, and redeemable NCDs to identified investors in dematerialised form for cash.
The issuance was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with the SEBI master circular dated January 30, 2026, and the SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021. The allotment aligns with the General Information Document dated March 13, 2026, and the Key Information Document dated August 17, 2026.
Issue Details
The NCDs carry a face value of ₹1,00,000 each. The instrument features an original tenor of 1,893 days, with a residual tenor of 1,772 days as of the allotment date. The debentures are proposed to be listed on the Negotiated Trade Reporting Platform (NTRP) under the New Debt Market of the National Stock Exchange of India Limited.
| Particulars | Details |
|---|---|
| Allotment Date | August 20, 2026 |
| Maturity Date | June 27, 2031 |
| Coupon Rate | 7.7942% p.a. |
| Total Amount Allotted | ₹235 crore |
| Number of Debentures | 23,500 |
| Security Type | Senior, secured, rated, listed, redeemable |
Terms and Security
The debentures are secured by an exclusive and first-ranking charge by way of hypothecation over identified fixed deposits of the issuer and/or identified standard receivables. The principal amount of these hypothecated assets is equivalent to one time the principal amount and coupon outstanding.
Interest payments will be made annually, with the next coupon payable on June 27, 2027. In the event of a default in payment of the coupon rate or principal redemption on due dates, additional interest of 2% per annum over the coupon rate will be payable for the defaulting period. The NCDs will be redeemed at a price of ₹1,00,000 per debenture on the maturity date.
The initial offer size was ₹150 crore with an option to retain oversubscription up to ₹750 crore, aggregating to a maximum potential issue size of ₹900 crore. The final allotment of ₹235 crore reflects the uptake from identified investors within this framework.
Historical Stock Returns for L&T Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.21% | -0.77% | +2.91% | +6.73% | +45.03% | +297.41% |
How will the ₹235 crore NCD issuance impact L&T Finance's debt-to-equity ratio and overall leverage metrics for the upcoming fiscal year?
Given the 7.7942% coupon rate, how does this cost of capital compare to current market benchmarks for similar secured debt instruments in the NBFC sector?
What specific strategic initiatives or asset expansions is L&T Finance planning to fund with these proceeds, considering the initial offer size was significantly lower than the maximum potential?
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