L&T Finance Limited (LTFL) has officially decided to exercise the call option on its Subordinated Perpetual Upper Tier-II Debt (NCDs) issued in 2016 by the former L&T Housing Finance Limited. The redemption, which includes the principal outstanding and the 9.90% p.a. annual coupon, is scheduled for March 30, 2026. This action follows prior approval received from the Reserve Bank of India on February 12, 2026.
Decision to Redeem Perpetual Debt Instruments
L&T Finance Limited has formally notified the stock exchanges regarding the decision to exercise the call option on its Subordinated Perpetual Upper Tier-II Debt (NCDs). These instruments, originally issued by L&T Housing Finance Limited in March 2016, are being called back early, consistent with the terms outlined in the Information Memorandum.
Key Redemption Details
The redemption process is set to conclude on March 30, 2026. This final payment will cover both the principal outstanding amount and the accrued annual coupon rate of 9.90% per annum on the Debentures. A total of 500 Debentures, each with a face value of Rs. 10,00,000/- (totaling Rs. 50 crores), are subject to this redemption.
Official Timeline and Approval
The company has secured the necessary authorization from the Reserve Bank of India, evidenced by an approval dated February 12, 2026. In preparation for the payout, the company has established March 13, 2026, as the official Record Date for determining the eligible debenture holders entitled to receive the payment on March 30, 2026.
Communication to Debenture Holders
A formal letter, designated as ‘NOTICE,’ is being dispatched to all debenture holders based on the Beneficiary Position dated February 20, 2026. The company cautions that it will not assume responsibility for claims relating to securities sold or transferred after the established record date.
Source: BSE
