L&T Finance To Raise Up To Rs 100 Crore By Issuing Securities

L&T Finance Holdings Ltd. on Wednesday said it will raise up to Rs 100 crore by issuing compulsorily redeemable securities on private placement basis.

The company's committee of directors has approved an offer for issuing up to 1 crore cumulative compulsorily redeemable non-convertible preference shares to raise up to Rs 100 crore, the Larsen and Toubro Ltd. unit said in a regulatory filing.

L&T Finance said the CRPS will carry dividend of 7.95 percent per annum, payable annually. The tenure of the securities is three years and six months.

“In the event of a default in the payment of the dividend/principal on the due date, an additional dividend amount will be payable at the rate of 2 percent per annum over the dividend rate by the company for the defaulting period,” L&T Finance said.

On Wednesday, L&T Finance shares rose 1.53 percent to Rs 132.85 apiece on the BSE while the benchmark Sensex fell 0.62 percent to end the day at 39,502.05 points.