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Dia Deshpande made post

Why is L&T Finance Holdings planning to raise money in the market?

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Ria Jain answered.
4 weeks ago

L&T Finance Holdings will raise up to Rs.2000 crore via the issue of preference shares. It will also seek AGM approval during the AGM on July 28 this month. In all, the company will issue and allot 20 crore cumulative compulsorily redeemable non-convertible preference shares in one or more tranches. These preference shares will have a face value of Rs.10.

LTFH has conceded that steady growth in the operations of the subsidiaries of the company had necessitated regular and sustained infusion of equity and Tier-I or Tier-2 debt in its subsidiaries. These funds will be used predominantly for its working capital requirements including preference shares redemption from time to time.

L&T Finance is predominantly engaged in the business of rural finance which includes funding of farm equipment, two-wheelers, micro-loans, housing loans and consumer loans. It is also engaged in the non-lending business of investment management. The company is keep its coffers filled up to add on more business seamlessly.