The private non-banking financial company was incorporated in the year 1993, engaged in the business of non-banking finance in infrastructure, power, heavy engineering, electrical and automation etc. The company is a part of L&T (Larsen & Toubro) group which is a leading conglomerate in India. They have three primary business segments rural, wholesale and housing. In this year 2019, the company is going to release Non-convertible debentures (NCD). The content will demonstrate L&T Finance NCD Review, Price, Issue Details. Let’s begin with the issue details of the company.
About L&T Finance NCD Issue Details
- The issue opens on- Mar 6, 2019
- The issue close on- March 20, 2019
- Issue Type: Fixed Price Issue NCD
- Face value: Rs. 1000 Per NCD
- Issue size: 15,000,000NCD’s of Rs. 1000
- Issue size: Rs. 1,500.00 Crore
- Issue price: Rs. 1000 Per NCD
- Market lot: 1 NCD
- Listing At: BSE, NSE
- Minimum order quantity: 10 NCD
- DRHP: Click Here
Objectives of Issuing NCD
- The company plans to utilize the funds (raised through the issue) in lending, refinancing, financing the existing indebtedness of the company. Besides this, there is a payment of interest and repayment of principal of borrowings.
- General corporate purposes like enhancing brand name, images are also important factors behind the issue.
- Working capital requirements are also the objectives of issuing NCD.
- The company needs to raise its capital without raising equity capital.
About L&T Finance
- The company’s service focus on three primary business segments, rural, wholesale and housing.
- The rural business includes two-wheeler finance, farm equipment finance, and microloans.
- As of 2018, September, the total adjusted loans and advances of the rural business area were 21,43,287.66 lakhs with 6,73,562.41 lakhs, 4,27,208.83 lakhs, and 10,42,516.42 lakhs.
- Initially, the wholesale business segment comprised of supply chain finance, infrastructure finance and, structured corporate finance. At the beginning of the year, the company has agreed to transfer its supply chain financing business to another company, Centrum Financial Services Ltd.
- As of Sept 2018, the total advances and adjusted loans under the wholesale business were 16,48,572.73 lakhs, with 6,19,518.75 lakhs, 7,14,764.85 lakhs, 2,40,321.03 lakhs and, 73,968.10 lakhs.
- The housing business includes loans against real estate finance and property.
- As of 2018, September, under housing business, the adjusted total loans and advances were 6,86,372.65 lakhs with 10,831.72 lakhs and 6,75,540.93 lakhs.
- The company has spread its network all over 225 branches in 220 cities across 21 states and 3 union territories. As per the data in September 2018, the company has more than 17,998 employees.
Financial Products of the Company
- Two-wheeler Finance
- Housing Finance
- Farm Equipment Finance
- Mutual Fund
- Wealth Management
- Real Estate Finance
- Micro Loans
- Infra Finance
Competitive Strength of the Company
- Diversification in business considers as their competitive strength
- The company Strong appraisal, structuring and syndication capabilities come under the strength list.
- Their strong risk management framework
- The company has experienced and professional management team.
- Brand recall and synergies with the company.
- Their strategies include growing market share, become distinctive in each of the key business areas, margin, and profitability.
- In order to deliver improve performance metrics, they emphasize on fee income and cost efficiency.
- Enhance and innovate the technology system and data analytics as a competitive advantage.
Address: Technopolis, 7th Floor,
A-Wing, Plot No. – 4, Block – BP, Sector -V, Salt Lake,
Kolkata 700 091, West Bengal
Tel no: 033-66111800
Company Management Team
Chairperson and NonExecutive Director: Mr. Dinanath Mohandas Dubhashi
Independent Director: Dr. (Mrs) Rajani Rajiv Gupte
Independent Director: Mr. Pradeep Vasudeo Bhide
NonExecutive Director: Mr. Ashish Arvind Kotecha
In order to state the L&T Finance NCD Review, a financial statement is required.
L&T Finance NCD Review
It is the most important part of the article L&T Finance NCD Review. The above statement is derived from the company prospectus. It reflects the company’s annual profit-loss statement of previous years. As per the data, the company has gained huge profit in FY18 compared to the previous FY17. In the FY17, it had a profit of 4,266.17 lakhs while FY18 had 33,225.09 lakhs. They had EPS (earnings per share) 29.6 in the financial year 2018. Based on our analysis, L&T Finance NCD Review carries a NEUTRAL view. Long-term investors may go for it.