L&T Finance Holdings approves raising up to Rs 3,000 crore
L&T Finance Holdings (LTFH) on Monday said its board has approved raising up to Rs 3,000 crore through a rights issue.
“The board approved the offer and issuance of fully paid-up equity shares of the company for an amount not exceeding Rs 3,000 crore by way of a rights issue to the eligible equity shareholders of the company,” the company said in a communication to the stock exchanges.
L&T Finance added that the details of the rights issue, including price and entitlement ratio, will be determined in due course.
Shares of the company ended with marginal losses at Rs 67.45 on the BSE on Monday.
Banks and lending institutions have been in a fund mobilisation drive over the past couple of months to fund growth and provide for a possible rise in bad loans because of the pandemic.
LTFH is a non-banking finance company (NBFC) engaged in rural, housing and infrastructure finance.
It reported robust numbers for the second quarter ended September 30 when consolidated net profits rose 52 per cent to Rs 265 crore following a strong revival in the rural economy. The company had posted a net profit of Rs 174 crore in the corresponding quarter of 2019-20. Total income for the quarter fell to Rs 3,508.91 crore against Rs 3,711.85 crore in year-ago period.
LTFH had said it witnessed excellent revival in the rural and renewable sector and gained market share to become the No. 1 farm equipment financier during the quarter.