L&T Finance has came out with NCD Issue of Rs 1,000-crore.L&T Finance is promoted by engineering and construction major Larsen & Toubro (L&T). L&T finance plans to raise Rs 1,000-crore through its first-ever public offer of non convertible debentures .the issue will remain open between August 18 and September 4.
The company is offering 50-lakh Secured Redeemable Non-Convertible Debentures (NCDs) of the face-value of Rs 1,000 each aggregating to Rs 500 crore with an option to retain over-subscription up to Rs 500-crore aggregating to a total of Rs 1,000-crore.The issue offers various investment options and maturity periods range from five to ten years and the annualised yield for ten year debenture work out to 10.50%.The NCDs would be listed on the National Stock Exchange (NSE).
Under its quarterly interest payment option the coupon rate is 9.51% per annum and the annualized yield is 9.85%. The maturity period is 60 months.
Under the semi-annual interest payment option maturity period is 60 months and the coupon rate is 9.62% per annum and the annualized yield is 9.85%.
Its cumulative interest payment option offers a coupon rate of 9.95% compounded annually and the annualized yield of 9.95%. The maturity period is 88-months from the deemed date of allotment.
The interest rates are lower that Sri Ram Transport NCD .(9.5-11 %)I personally don’t feel worth to put the money for 10 years.As the interest rates are not much better.It will be better to invest in SIP mutual funds for 10 years