The board of L&T Finance Holdings on Monday approved raising of up to Rs 1.01 lakh crore through the issuance of non-convertible debentures in one or more tranches.
“The Board approved raising of funds by issuance of non-convertible debentures (including subordinated-debt, masala bonds and perpetual debt) from time to time, in one or more tranches, such that at any point of time the NCDs issued and outstanding does not exceed an aggregate amount of Rs 1,01,000 crore,” the company said in a filing.
L&T Finance is a leading NBFC, offering a range of financial products and services under the L&T Finance brand. Headquartered in Mumbai, the company has been rated ‘AAA’ — the highest credit rating for NBFCs — by four leading rating agencies.
The company is focused on creating a top-class, digitally enabled, retail finance company as part of the Lakshya 2026 plan. The goal is to move the emphasis from product focus to customer focus and establish a robust retail portfolio with quality assets, thus creating a fintech at scale.
Fintech at scale is one of the pillars of the company’s strategic roadmap — Lakshya 2026. The company has over 2.2 crore customer database, which is being leveraged to cross-sell, up-sell, and identify new customers.
Over the years, the L&T Group company has been constantly reducing its dependence on the wholesale lending business by aggressively expanding its well-diversified retail financing business, which has grown at a CAGR of 24% over FY18-23.
It has established itself as a strong and well-capitalised financial institution. It has a strong presence in farm equipment finance, two-wheeler finance, as well as micro-loans.
In the recent third quarter, L&T Finance reported 41% growth in net profit on strong retail loan growth and high fee income even as asset quality remained stable. Net profit increased to Rs 640 crore during the quarter from ₹454 crore a year ago.
The company recorded its highest-ever quarterly retail disbursements at Rs 14,531 crore, up 25% year-on-year led by a 31% growth in its retail book, which increased to Rs 74,759 crore.
On Monday, the company’s shares closed 1,76% lower at Rs 148.25 on NSE.
