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L&T Finance gets advantage of tax saving bonds launch by subsidiary

25 Nov 2011 Evaluate

L&T Finance Holdings is currently trading at Rs 45.85, up by 0.80 points or 1.78% from its previous closing of Rs. 45.05 on the BSE.

The scrip opened at Rs. 45.05 and has touched a high and low of Rs. 45.90 and Rs. 44.60 respectively. So far 191215 shares were traded on the counter.

The BSE group 'B' stock of face value Rs 10 has touched a 52 week high of Rs 53.00 on 30-Aug-2011 and a 52 week low of Rs. 44.00 on 23-Nov-2011.

Last one week high and low of the scrip stood at Rs 46.50 and Rs 44.00 respectively. The current market cap of the company is Rs 7724.86 crore.

The promoters holding in the company stood at 82.64% while Institutions and Non-Institutions held 4.90% and 12.46% respectively.

L&T Infrastructure Finance Company, a unit of the recently-listed L&T Finance Holdings has launched Rs 1,100-crore retail tax-saving bond issue with a coupon rate of 9%. The 10-year maturity bonds, which hit the market on November 25 and will close on December 24, can be traded on the bourses after a five-year lock-in and an individual can invest a maximum of Rs 20,000 to save income tax.

The company is looking to broad base fund sources and exploring external commercial borrowing (ECB) route even as the global markets remain weak.

L&T Infrastructure Finance has raised $90 million through the ECB window this fiscal and is aiming to raise more. The company has total headroom to raise up to Rs 600 crore. Under the existing norms a dedicated infrastructure finance company can raise up to 50% of its previous fiscal’s net worth through ECB route.

Up to 60% of the firm’s funds are raised from banks at present while the rest comes from bonds subscribed by individuals and mutual funds.

L&T Finance Holding, a leading non-banking finance firm offering a diverse range of financial products and services across the corporate, retail and infrastructure finance sectors, as well as mutual fund products and investment management services, through its direct and indirect wholly-owned subsidiaries.

L&T Finance Share Price

292.00 4.65 (1.62%)
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