L&T Finance is positioned for a potentially significant market development today as the MSCI February rejig announcement is scheduled for 3pm. The financial services company is expected to benefit from index inclusions that could bring substantial investment flows.

Expected MSCI Inclusion Details

The February rejig is anticipated to include L&T Finance with an inclusion value that represents a considerable investment opportunity:

Significance of MSCI Index Inclusion

MSCI index inclusions are closely watched events in the Indian financial markets as they typically result in increased institutional investor participation. When stocks are included in MSCI indices, passive funds tracking these indices are required to purchase the included securities, often leading to increased trading volumes and investor interest.

For L&T Finance, this potential inclusion represents a notable recognition of the company's market position and could enhance its visibility among global institutional investors. The substantial value of USD 245M (Rs 22.3B) associated with this expected inclusion underscores the significance of this development for the company.

Market Impact

The timing of today's 3pm announcement will be crucial for market participants and investors tracking L&T Finance. MSCI rejig announcements often influence trading patterns and investor sentiment, particularly for companies experiencing inclusions or exclusions from major indices.

L&T Finance Limited has announced the exercise of call option on its subordinated perpetual tier-I debt instruments, marking a significant corporate action for the financial services company. The announcement was made through a regulatory filing dated February 24, 2026, addressed to both NSE and BSE.

Debenture Details and Background

The non-convertible debentures (NCDs) in question were originally issued by L&T Infrastructure Finance Company Limited through an Offer Document dated March 30, 2016. L&T Infrastructure Finance Company Limited was subsequently merged with L&T Finance Limited as part of a corporate restructuring exercise in 2021.

The debentures were issued on a private placement basis and are listed on the Wholesale Debt Market segment of BSE Limited. These instruments were structured as subordinated, perpetual, tier-I debt with put/call options exercisable after a minimum period of 10 years, subject to Reserve Bank of India approval.

Call Option Exercise and Timeline

L&T Finance Limited has decided to exercise the call option following regulatory approval from the Reserve Bank of India dated February 12, 2026. The company has established a clear timeline for the redemption process.

Payment Structure

The company will pay both the principal outstanding amount and the annual coupon on the redemption date. The coupon payment will be calculated at the rate of 9.50% per annum as specified in the original terms of the issue.

Regulatory Compliance

The announcement has been made in compliance with multiple regulatory frameworks:

• Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
• SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021
• SEBI master circular dated January 30, 2026

The company has sent formal notices to debenture holders as per the beneficiary position dated February 20, 2026, treating the communication as official notice for the call option exercise. L&T Finance Limited has clarified that it will not be responsible for any claims related to securities sold or transferred after the specified record date of March 13, 2026.