L&T Finance Limited has announced the exercise of the call option for its Subordinated Perpetual Tier-I Debt (NCDs) originally issued by Family Credit Limited. Following prior approval from the RBI, the company confirmed the redemption of these perpetual debt instruments. The final payment of the outstanding principal along with the annual coupon will occur on March 30, 2026, with a Record Date set for March 13, 2026.
Formal Notice of Call Option Exercise
L&T Finance Limited (formerly L&T Finance Holdings Limited) has formally notified the stock exchanges regarding the exercise of the call option on its existing debt instruments. This action relates to the Subordinated Perpetual Tier – I Debt (“NCDs”) which were initially issued vide an Offer Document dated March 29, 2016.
Key Debt Instrument Details
The specific debt instruments in question are the Series “I” of FY 2015-16, identified by ISIN: INE027E08079. These Unsecured, Non-Convertible Debentures had a face value of Rs. 10,00,000/- each, amounting to a total issuance of Rs. 50 crores via a Private Placement. The NCDs featured a put/call option exercisable after a minimum period of 10 years.
Redemption Schedule and Approvals
The Company confirmed its decision to exercise the call option, contingent upon the necessary regulatory clearance. Approval to proceed with the call option exercise was officially received from the Reserve Bank of India on February 12, 2026. Consequently, the final redemption date for the principal outstanding and the annual coupon payment has been set for March 30, 2026.
The annual coupon rate applicable to these Debentures is set at 10.10% p.a. The Company has fixed March 13, 2026, as the official Record Date for determining the beneficiaries entitled to receive the final payment.
Action Required for Holders
This letter serves as the official ‘NOTICE’ to all registered debenture holders concerning the call option exercise as detailed in the attached Annexure A. Holders are advised that the Company will not be responsible for claims arising from securities sold or transferred after the established Record Date of March 13, 2026.
Source: BSE
