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L&T Finance Holdings Limited

Maiden rights issue by a leading NBFC for INR 30 billion

2021

Deal Highlights

  • LTFH is one of the leading NBFCs in the organized sector in India with total loans outstanding of INR 988 Bn with focus on key business segments like Rural Finance, Housing Finance, Infrastructure Finance and Investment Management
  • LTFH chose to tap the equity capital markets via its maiden rights issue during the Covid-19 Pandemic
  • The Rights Issue comprised of 46.13 Cr equity shares priced at a discount of 35% to the last closing price (on the day before the date of announcement of terms)
  • The issue witnessed solid response from investors with the issue subscribed 1.15x
  • LTFH shall utilize the net proceeds from the issue towards repayment of commercial papers, fund infusion in subsidiary and redemption of preference shares

 

SBICAP Value Add

  • SBICAP strategized and coordinated the entire retail marketing plan along with reaching out to large institutional investors
  • SBICAP – Played key role in enabling SBI to activate its online ASBA facility, mailers & SMS to create awareness and adhered to the tight transaction timelines 
  • SBI Bank – Activated online ASBA platform within a short span of time and created awareness amongst its 20,000+ ASBA branches ensuring seamless participation by eligible shareholders  in the Rights Issue
  • SBICAP Securities – Reached out to eligible shareholders via network of 100+ branches, mailers & SMS and played a key role in addressing investor queries

Issue Details

Rights Issue Size INR 30 Bn
Issue Type Fast Track Rights Issue
Rights Issue Price INR 65 per Rights Equity Share
Lead Managers SBICAP, AXIS CAP, BOBCAPS, CITI, CREDIT SUISSE, HSBC, ICICI SEC, MOTILAL OSWAL and UBS
Discount to Price on last closing before announcement of terms 35%
Record Date Friday, January 22, 2021
Issue Opening Date Monday, February 1, 2021
Issue Closing Date Monday, February 15, 2021
Rights Ratio 17 Equity Shares for every 74 Equity Shares held on the Record Date
Issue Subscription 1.15x

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