L&T Finance allots ₹650 crore NCDs at 7.84% coupon rate
- L&T Finance allotted ₹650 crore in senior secured NCDs on September 18, 2026
- Instruments carry a fixed coupon rate of 7.8384% payable annually
- Debentures mature on September 28, 2029, with principal repayment at par
- Security created via hypothecation over fixed deposits and standard receivables
- Listing proposed on NSE's Negotiated Trade Reporting Platform (NTRP)
*this image is generated using AI for illustrative purposes only.
L&T Finance Limited has completed the allotment of ₹650 crore worth of non-convertible debentures (NCDs) on a private placement basis. The issuance was finalized on September 18, 2026, securing long-term funding for the non-banking financial company.
The debentures are senior, secured, rated, listed, redeemable, and issued in dematerialized form for cash. The issue size of ₹650 crore represents the base tranche of a larger potential offering that included an oversubscription option of up to ₹1,850 crore.
Deal Terms and Structure
The NCDs carry a fixed coupon rate of 7.8384% per annum. Interest payments are scheduled annually, with the first coupon due on September 28, 2027. The principal amount will be redeemed at maturity on September 28, 2029.
| Metric | Details |
|---|---|
| Allotment Date | September 18, 2026 |
| Maturity Date | September 28, 2029 |
| Coupon Rate | 7.8384% p.a. |
| Face Value | ₹1,00,000 per debenture |
| Total Allotted | 65,000 debentures |
Security and Listing
The instruments are secured by an exclusive and first-ranking charge by way of hypothecation over identified fixed deposits and/or standard receivables of the issuer. The value of these hypothecated assets is equivalent to one times the outstanding principal and coupon amount.
The NCDs 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. In the event of a default in payment of interest or principal, the company is liable to pay additional interest at 2% per annum over the coupon rate for the defaulting period.
Historical Stock Returns for L&T Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +3.47% | +0.48% | -0.70% | +18.87% | +28.78% | +265.85% |
How will L&T Finance utilize the ₹650 crore raised to optimize its asset-liability mismatch given the 3-year maturity of these NCDs?
What impact might the 7.8384% coupon rate have on L&T Finance's net interest margins compared to its current cost of funds from other sources?
Given the oversubscription option was not fully exercised, does this indicate investor caution towards the NBFC sector's credit quality in late 2026?
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