L&T Finance allots ₹1,050-crore non-convertible debentures on private placement basis

Retail-focused non-bank lender L&T Finance Ltd (formerly known as L&T Finance Holdings Ltd) on Friday (October 10) has allotted 1,05,000 senior, secured, rated, listed, redeemable non-convertible debentures (NCDs) with a face value of ₹1,00,000 each, aggregating to ₹1,050 crore, on a private placement basis to an identified investor. The company made the allotment on October 10, 2025.

The NCDs, proposed to be listed on the National Stock Exchange of India Limited under the New Debt Market (NTRP), carry a coupon rate of 7.2190% per annum. The first coupon payment is scheduled for November 10, 2025, followed by annual payments, with maturity and redemption on November 10, 2028—a tenure of 1,127 days.

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The debentures are secured by an exclusive first-ranking charge through hypothecation over identified fixed deposits and/or standard receivables of the issuer, equivalent to one time of the principal and coupon outstanding. In the event of a default in payment of interest or principal, an additional interest of 2% per annum over the coupon rate will be applicable for the defaulting period.

Each NCD will be redeemed at a price of ₹1,00,000 upon maturity. The company confirmed there are no special rights, privileges, or delays in payments, and all terms are in accordance with SEBI’s regulatory framework.

Shares of L&T Finance Ltd ended at ₹255.76, down by ₹4.48, or 1.72%, on the BSE.

Also Read: L&T Finance Q1 Results | Net profit at ₹701 crore; retail loan book scales record ₹99,816 crore