Larsen & Turbo Finance Holdings on Monday declared that its board has approved raising of up to Rs 3,000 crore through a rights issue. “The board approved the offer and issuance of fully paid-up equity shares of the company for an amount not exceeding Rs 3,000 crore by way of a rights issue to the eligible equity shareholders of the company,” L&T Finance Holdings said in a regulatory filing.
L&T had begun discussions with advisers on a potential Rs 2,000 crore – Rs 3,000 crore fundraise since August 19. With this move, L&T has joined the band of many NBFCs and banks that have raised capital in the last months to heave their balance sheets up from the disruption caused by the COVID-19 pandemic, and also to avail of the opportunities that may have resulted from the economic fallout caused by the pandemic. These include leading private sector lenders ICICI Bank, HDFC Ltd and Axis Bank which together have raised around Rs 39,000 crore in equity capital through their respective QIPs (qualified institutional placement). NBFCs such as Mahindra Finance and Shriram Transport Finance have raised Rs 3,089 crore and Rs 1,500 crore through their respective rights issue.
The company is yet to reveal details of the rights issue, including price and entitlement ratio. Shares of L&T Finance Holdings Ltd were trading 0.37 per cent lower at Rs 67.35 apiece on the BSE.
