Now that L&T finance holdings have announced that the company has proposed  Issue of Cumulative Compulsorily Redeemable non-Convertible Preference Shares on a private placement basis people are interested all over to invest.
What is Cumulative Compulsorily Redeemable non-Convertible Preference Shares?

Preference shares are shares that carry certain special or priority rights. Cumulative means in case the company does not pay a dividend for year1, it shall be cumulated (added) over next year dividend, which shall lapse after 3 years, if stand unpaid. Redeemable means which can be redeemed at a point of time. Whereas, non-convertible means these shares cannot be converted into equity shares at any point in time. 

Let me be clear that when the issue is on a private placement basis the offer is not available to the general public initially.
Why you should consider investing in preference shares?
Preferential right over the dividend declared by the company.
Higher claim on the company’s assets in case the company liquidates.
Why investing in preference shares is not a good option?
Lack of shareholder voting rights

Company has the right to repurchase shares which is one of the major drawbacks to shareholders.