L&T Finance to raise Rs.400-500 crore by March

By IANS,

Kolkata : Engineering major Larsen & Toubro’s financial services arm, L&T Finance Ltd, would raise another Rs.400-500 crore through debt after its current Rs.500 crore fund raising through an issue of non-convertible debentures, a company official said here Thursday.


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“We have already raised Rs.3,000 crore in the current financial year and by March, we would be raising another Rs.1,000 crore,” assistant vice president (Treasury) G.K. Shettigar said in a press meet.

He was here to announce the company’s ongoing non-convertible debentures issue, which closes Feb 22.

L&T Finance, the wholly-owned subsidiary of L&T Capital Holdings Ltd which is 99.99 percent owned by Larsen & Toubro Ltd, plans to raise Rs.400-500 crore in the form of long-term debt, he said.

The loan asset base of the company till September 2009 was Rs.6,200 crore and is expected to be around Rs.6,800 crore by the end of the current fiscal (2009-10).

The last capital infusion – Rs.125 crore – took place in November. The capital adequacy ratio of the company is at 15.60 percent now. It has a network of 77 branches across the country.

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