L&T Finance Limited NCD- Tranche-I
Public issue by L&T finance limited (“company ”or the “ issuer ” ) of secured redeemable Non -convertible debentures of face value of ₹ 1,000 Indian rupees one thousand) each (“secured NCDs”) and / or unsecured , subordinated, redeemable non – convertible debentures of face value of ₹ 1,000 (Indian rupees one thousand) each (“unsecured NCDs ”) for an amount up to ₹ 5000,00,00,000 (Indian rupees five thousand crores) (“shelf limit”) (“issue ”).
The Unsecured NCDs will be eligible for tier ii capital. The secured NCDs / unsecured NCDs will be issued in one or more tranches up to the shelf limit, on terms and conditions as set out in the relevant tranche prospectus for any tranche issue (each a “tranche issue”) , which should be read together with this draft shelf prospectus and the shelf prospectus (collectively the “offer document ”).
Objective of NCD L&T Finance Limited NCD- Tranche-I:
The Objective of raising 5000 Cr from NCDs is:
(i) For the purpose of onward lending, financing, refinancing the existing indebtedness of L&T Finance Limited ( payment of the interest and /or repayment /prepayment of principal of borrowings.
(ii) For General Corporate Expense.
L&T Finance Limited NCD- Tranche-I Details:
| Open Date: | Mar 06 2019 |
| Close Date: | Mar 07 2019 |
| Issue Type: | Fixed Price Issue NCD |
| Issue Size: | ₹ 5000 Cr. |
| Face Value: | ₹ 1000 Per NCD |
| Market Lot: | 10 NCD |
| Minimum Order Quantity: | 1 NCD |
| Listing At: | NSE,BSE |
Promoters:
The promoter is L&T Finance Holdings Limited.
Financials:
1. As on 31.03.2018, total Debt on Balance Sheet is 28466 Cr and Equity is 8648 Cr. So Debt/Equity= 3.29.( Reasonable).
2. The Revenue for FY17-18 is at 5245 Cr which is up by 26% as compared to FY16-17.
3. The PAT for FY17-18 is at 332 Cr which is up by 700% as compared to FY16-17.
Credit Rating:
The NCDs proposed to be issued under this Issue have been rated:
(i) ICRA AAA (stable) (pronounced as ICRA triple-A with Stable outlook)for an amount of ₹ 5,00,000 lakhs, by ICRA Limited (“ ICRA ”)
(ii) CARE AAA / Stable (pronounced as CARE triple-A with Stable Outlook) for an amount of ₹ 5,00,000 lakhs, by CARE Ratings Ltd. (“CARE”).
(iii) IND AAA / Stable (pronounced as IND triple-A with Stable outlook) for an amount of ₹ 5,00,000 lakhs by India Ratings and Research Private Limited (“ India Ratings ”) vide their letter dated December 31, 2018.
The rating of NCDs by ICRA, CARE and India Ratings indicate that instruments with this rating are considered to have high est degree of safety regarding timely servicing of financial obligations and carry lowest credit risk.
Interest Rates:
| Series | I | II | III | IV | V | VI |
| Frequency of Interest payment | Annual | Cumulative | Annual | Monthly | Annual | Monthly |
| Tenure (In Months) | 37 months | 37 months | 60 months | 60 months | 120 months | 120 months |
| Nature | Secured | Secured | Secured | Secured | Secured | secured |
| Coupon (% p.a) - Category I &II | 9.00% | NA | 9.10% | 8.75% | 9.20% | 8.84% |
| Coupon (% p.a) - Category III, and IV | 9.10% | NA | 9.25% | 8.89% | 9.35% | 8.98% |
| Effective Yield (% p.a) - Category I | 9.00% | 9.00% | 9.09% | 9.10% | 9.19% | 9.20% |
| Effective Yield (% p.a) - Category II,III, IV | 9.10% | 9.10% | 9.24% | 9.25% | 9.34% | 9.35% |
Recommendation:
Review and Recommendation of L&T Finance Limited NCD by InvestorZone team: 4/10
[ The company has good fundamentals. The company has a good pedigree of management. The investors who are looking for something more than FD can surely have a look in this NCD.]
1-5: Fair
5-7: Good
7-10: Excellent
Lead Manager of L&T Finance Limited NCD- Tranche-I:
- A. K. Capital Services Limited
- Axis Bank Limited
- Edelweiss Capital Limited
- Trust Investment Advisors Private Limited
Registrar of L&T Finance Limited NCD- Tranche-I:
- Link Intime India Private Limited
Discussion on L&T Finance Limited NCD- Tranche-I:
14 Comments
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Day 1 application, full allotment in retail category
The issue has closed on 7th march itself
Which are all the banks participating in ASBA? can i use Union bank of india or karur vysa bank
Please login into your net banking and check whether NCD option is coming or not?
06.03.2019( Subscription Figure)
Cat-I= 0.02 times
Cat-II= 0.12 times
Cat-III= 0.92 times
Cat-IV= 1.12 times
The Retail category subscribed on day-1 itself.
what is the meaning of reference 4/10 stated in your recomendation. please clarify,
i am the new invester.
Means it is a good investment bet.
what about TDS on interest, they deduct or we need to pay later
good ncd to apply.
The NCDs offered through this Draft Shelf Prospectus along with relevant Tranches are proposed to be listed on the BSE Limited (“BSE”)and National Stock Exchange of India Limited (“NSE”).
How to invest in this NCD, pls guide.
You can apply similarly to IPO from Net Banking.
For commission on NCD OF LNT PLEASE CALL 9462659179
Paper Name: L&T Finance Limited
Nature Of Instrument: Secured Redeemable NCD
Mode Of The Issue: Public Issue
Issue Size: 1500 Cr
Rating: CARE AAA Stable, IND AAA/Stable, ICRA AAA (Stable)
Face Value: 1000
Listing: Proposed To Be List on BSE
Tenor & Interest
Monthly
60 Months: 8.89%
120 Months: 8.98%
Annually
37 Months: 9.10%
60 Months: 9.25%
120 Months: 9.35%
Cumulative
37 Months: 9.10%
*Issuance in demat mode only*
*Allocation Ratio*
Institutional: 20%
Non Institutional: 20%
HNI: 30%
Retail: 30%
Issue Opening Date: 6th March 2019
Issue Closing Date: 20th March 2019
Lead Manager: A K Capital Limited & Others