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L&T Finance Holdings Ltd. has announced that its ₹2,998.61-crore rights issue will be opening on 1st February 2021. The issue will close on 15th Feb 2021. As per the announcement, up to 46,13,25,021 equity shares for cash will be issued by the company at a price of Rs 65 each (including a premium of Rs 55 per equity share) not exceeding Rs. 2,998.61 crore to eligible equity shareholders. The equity shares will be issued in the ratio of 17 shares for every 74 shares held by equity shareholders of the L&T Finance Holdings as on January 22, 2021.

The funds generated from the issue will be utilized to repay certain commercial papers issued by the company, infusion of funds in the company’s subsidiary, for repayment of certain commercial papers issued by such subsidiary, the redemption of preference shares issued by the company and for general corporate purposes. 

You can find all the necessary L&T Finance Rights Issue details in this article including issue date and how to apply online.

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About the Company

Established in 2008, L&T Finance Holdings Limited is a non-banking financial company registered with RBI  and is a core investment company (“NBFC-CIC”). L&T operates its financial services businesses through various wholly-owned subsidiaries. L&T Financial Services is the brand name behind L&T Finance Holdings Ltd. and is one of the leading private sector non-banking financial services companies in India.

L&T Finance has the support of a strong promoter, Larsen & Toubro Limited (“L&T”) which is one of the leading business conglomerates in India. It has its presence across various sectors such as power, infrastructure, heavy engineering, electrical and automation, financial services, IT, and technology services, power development, realty, construction, mining, shipbuilding, industrial machinery and much more. The company has primarily categorized its business across four areas: Rural Finance, Housing Finance, Infrastructure Finance, and Investment Management.

L&T Finance has its presence across 21 states and one union territory and has a total of 206 branches in 199 cities.

Details about L&T Finance Rights Issue 

Opening date of the issue 1st February 2021 – 15th February 2021
Name of the security L&T Finance Holdings Limited
Issue Size (in terms of Shares) 46.13 Crores
Issue Size (in terms of amount) Rs. 2,998.61 Crores
Price of the issue Rs. 65 per share
Face Value Rs. 10 per share
Market Lot 1 per share
Listed at BSE, NSE
Payment Terms The full amount at a price of Rs.65 per Rights Equity Share
Hos it will be issued 17 shares for every 74 fully Paid-up Equity Shares held on the Record Date

What are the Company Strengths?

  • As mentioned, the company has a strong presence across diversified businesses like Infrastructures, Rural, housing finance and Investment Management.
  • Has a strong leadership in the market as a financier across various products.
  • Strong digital and analytics infrastructure
  • Strong risk management framework.
  • Strong parentage of L&T.
  • Has an experienced and completely professional management team.

What are Company Strategies?

  • L&T Finance plans to maintain strong leadership in areas with an established presence and expand into newer areas.
  • Boost technology systems and data analytics to get an edge
  • Focus on net interest margin and fee income to deliver improved performance metrics
  • Continue to focus on Asset Liability Management and strengthen liability profile.
  • Maintain focus on cost-cutting and improving cost-efficiency.
  • Leverage from food, FMCG industry, and IML products by increasing contribution

L&T Finance Rights Issue – FAQs

Ques. How can I apply for L&T Finance Rights Issue?

Ans. You can apply for L&T Finance Rights Issue in 2 ways:

  • Net Banking (ASBA) – If it’s supported by your bank, you can apply online just like an IPO. 
  • Registrar’s Website (R-WAP Facility)

Ques. Till when is the L&T Finance rights issue open?

Ans. The L&T Finance Rights Issue is available from  1st Feb 2021 to 15th Feb 2021. 

Ques. What is the issue price for L&T Finance Rights Issue?

Ans. The price for L&T Finance Rights Issue is set at ₹65 per share per equity share.

Ques. What are the objectives of the issue?

Ans. The funds raised from the Issue are supposed to be utilized:

  1. To repay partial commercial papers issued by the Company and its wholly-owned subsidiaries.
  2. To redeem the preference shares issued by the Company
  3. For other corporate purposes.

Happy Investing!

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