L&T Finance to raise up to Rs 100 cr by issuing securities

L&T Finance Holdings Wednesday said it will raise up to Rs 100 crore by issuing compulsorily redeemable securities on private placement basis. The company's committee of directors has approved an offer for issuing up to 1 crore cumulative compulsorily redeemable non-convertible preference shares (CRPS) to raise up to Rs 100 crore, it said in a regulatory filing. L&T Finance said the CRPS will carry dividend of 7.95 per cent per annum payable annually. The tenure of the securities is 3 years and 6 months. 

"In the event of a default in the payment of the dividend/principal on the due date, an additional dividend amount will be payable at the rate of 2 per cent per annum over the dividend rate by the company for the defaulting period," L&T Finance said. Stock of the company closed 1.64 per cent up at Rs 133 on BSE.