L & T Finance NCD subscribed

The NCD issue from L& T finance has been fully subscribed.     While the initial response from the retail investors was slow,      the issue managed to get the required subscriptions, to fill the 35% NCDs allocated for this category.    

The 7 and 10 year NCDs,  attracted over 50% of applications.

Overall,   the issue was oversubscribed by 3.86 times the original amount of 500 crores.          The lack of enthusiasm,   can be attributed to the relatively low interest rates and long lock-in periods,   when compared to other recent offerings (Shriram Transport NCD,  Tata Capital NCD) and other short term FDs that are currently available.

Update : September 24 :  L & T Finance NCD has listed at a premium of Rs 29 and traded at an intra-day high of Rs 42 over the listing price.     

Investors can look up the intraday quotes,  by using the ticker symbol “L&TFINANCE – N1” on NSEDAILY.COM.