Rating Rationale
December 12, 2023 | Mumbai

L&T Finance Holdings Limited

'CRISIL AAA/Stable' assigned to Bank Debt; 'CRISIL AAA/Stable', 'CRISIL PPMLD AAA/Stable', 'CRISIL A1+' assigned to Long Term Principal Protected Market Linked Debentures, Retail Bond, Non Convertible Debentures, Subordinated Debt, Preference Shares, Commercial Paper

 

Rating Action

Total Bank Loan Facilities Rated&**

Rs.11500 Crore

Long Term Rating

CRISIL AAA/Stable (Assigned)

 

Rs.1735 Crore Preference Shares

CRISIL AAA/Stable (Reaffirmed)

Rs.305 Crore Non Convertible Debentures

CRISIL AAA/Stable (Reaffirmed)

Rs.2500 Crore Commercial Paper

CRISIL A1+ (Withdrawn)

Rs 4390.80 Crore Non Convertible Debentures#

CRISIL AAA/Stable (Assigned)

Preference Shares Aggregating Rs.683.21 Crore@#

CRISIL AAA/Stable (Assigned)

Long Term Principal Protected Market Linked Debentures Aggregating Rs.813.80 Crore#

CRISIL PPMLD AAA/Stable (Assigned)

Rs.4440.10 Crore Retail Bond*&

CRISIL AAA/Stable (Assigned)

Rs.5000 Crore Retail Bond^&

CRISIL AAA/Stable (Assigned)

Rs.26000 Crore Commercial Paper&

CRISIL A1+ (Assigned)

Non Convertible Debentures Aggregating Rs.20875 Crore&

CRISIL AAA/Stable (Assigned)

Subordinated Debt Aggregating Rs.1000 Crore&

CRISIL AAA/Stable (Assigned)

*Public Issue of Secured Redeemable Non-Convertible Debentures and/or Unsecured Subordinated Redeemable Non-Convertible Debentures

^Public issue of secured redeemable non-convertible debentures

**Interchangeable with short term bank facility

@cumulative redeemable non-convertible

#Transferred from L&T Infra Credit Limited (LTICL)

&Transferred from L&T Finance Limited (LTF)

Note: None of the Directors on CRISIL Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings.

1 crore = 10 million   

Refer to annexure for Details of Instruments & Bank Facilities

Detailed Rationale

CRISIL Ratings has reaffirmed its ‘CRISIL AAA/Stable/CRISIL A1+’ on outstanding debt facilities of L&T Finance Holdings Limited (LTFH). CRISIL Ratings has also assigned its 'CRISIL AAA/CRISIL PPMLD AAA/Stable/CRISIL A1+' rating to debt facilities of L&T Finance Limited (LTF) and L&T Infra Credit Limited (LTICL), which have now been transferred to the merged entity -LTFH, on receipt of the letter of novation.

 

CRISIL Ratings has also withdrawn its ‘CRISIL A1+’ rating on commercial paper Rs.2,500 crore at the request of the company. The withdrawal is in line with CRISIL Ratings' withdrawal policy. 

 

Rating action is driven by the completion of the scheme of merger of its operating  entities L&T Finance Ltd (LTF), L&T Infra Credit Ltd (LTICL) and L&T Mutual Fund Trustee Ltd (LTMFTL), with LTFH post requisite approvals from shareholders, creditors and statutory / regulatory authorities. LTFH will act as single unified retail operating NBFC and has applied for NBFC-ICC (NBFC – Investment and Credit Company) registration. LTFH would comply with the guidelines as applicable to NBFC-ICCs from the effective date of the scheme i.e December 04, 2023.

 

The ratings continue to reflect the strong and diversified presence of the merged entity (LTFH) across the lending business with rise in retail portfolio mix and a well-diversified resource profile. The ratings also factor in the improved granularity of the loan book with increase in the share of retail loans (88% as on September 30, 2023 from50% as on December 31, 2021), which is in line with the company’s strategy - Lakshya 2026, wherein one of the goals was to increase retail loan book to >80% by 2026.  It also centrally factors in the expectation of strong support from the parent, Larsen and Toubro Limited (L&T; rated 'CRISIL AAA/Stable/CRISIL A1+'). These strengths are partially offset by moderate, though gradually improving, asset quality.

Analytical Approach

For arriving at the rating, CRISIL Ratings considers the business and financial risk profile of L&T Finance Holdings Limited (LTFH, the merged entity; including LTF and LTICL). CRISIL Ratings has also factored in the strong support from the parent, Larsen & Toubro Ltd (L&T; rated 'CRISIL AAA/Stable/CRISIL A1+'), given the strategic importance of the entity to the parent along with the shared brand name. L&T is the majority shareholder of LTFH, with a shareholding of 66.02% as on September 30, 2023.

 

Please refer Annexure - List of entities consolidated, which captures the list of entities considered and their analytical treatment of consolidation.

Key Rating Drivers & Detailed Description

Strengths:

  • Strategic importance to, and expectation of strong support from, L&T

LTFH has demonstrated healthy growth and improved its return on equity over the last few fiscals. Due to L&T’s focus on building a strong services portfolio including IT, technology and financial services, the LTFH has been identified as a key focus area by the parent. L&T provides strategic oversight to the entity and has personnel from its senior management on the board of LTFH. These includes Mr. S. N. Subrahmanyan (Chairman & MD, L&T Ltd) is the Non-Executive Director and Chairperson and Mr. R Shankar Raman (CFO, L&T Ltd) is the Non-Executive Director. The parent also has representation in some of the key committees of the company, such as asset-liability and risk management committees. LTFH also benefits from the synergies, extensive experience and expertise of L&T, especially in infrastructure and real estate lending. The parentage of L&T, along with the brand name, also supports resource profile.

 

Furthermore, the parent provides capital support to the entity and has infused around Rs 5,700 crore (till March 2022; including ~Rs 1,900 crore in fiscal 2021). L&T has also provided a line of credit to the merged entity, LTFH, which could be used during contingency. Capital support from the parent, along with internal cash accrual, is expected to keep capitalisation adequate, with gearing not expected to exceed 7.5 times on a steady-state basis.

 

The ratings also factor in the strong support from the parent, as demonstrated by the articulation of its intention to (i) maintain strategic linkages and management oversight so that, among others, the merged entity, LTFH conducts its business in a manner such that it honours its stakeholder obligations in a timely manner (ii) maintain majority shareholding in LTFH, and (iii) provide growth and risk capital, if and when required.

 

The financial services business is expected to remain one of the key focus areas for L&T, which should continue to support LTFH.

 

  • Strong and diversified presence across the lending business

LTFH, post-merger, has become the single unified retail focused operating NBFC. LTFH has built a strong market position, with assets under management (AUM) of Rs 78,734 crore as on September 30, 2023. Overall growth as on September 30, 2023 stood at 13% year-on-year on account of continued run down of wholesale portfolio while retail book continues to grow (33% year-on-year). The growth in the retail segment has also been supported by enhanced digital presence and usage of data analytics. Overall portfolio is well diversified with presence across various asset classes, such as Farmer Finance (farm equipment financing; 17% of AUM as on September 30, 2023), Two-wheeler Finance (12%), Rural Business Loans & Micro Finance Loans (28%), Personal Loans (8%), Home Loans (16%), Loan Against Property (LAP 4%), SME Finance (3%), Acquired Portfolio (0.9%), Infrastructure Finance (8%) and Real Estate Finance (4%).

 

As a part of its strategy, Lakshya 2026, to become a digitally enabled retail focused NBFC, LTFH will concentrate on scaling up and adding new products to existing retail book. LTFH plans to extensively make use of digitization in all the functional areas of sourcing, underwriting, disbursement, servicing and collections. As on September 30, 2023, business momentum has been strong across retail products, with retail portfolio at ~Rs 70,000 crore (year-on-year growth of 33% and quarter-on-quarter growth of 10%). Retail portfolio stood at 88% as September 30, 2023; which meets the company’s target of achieving a retail portfolio share of >80% by fiscal 2026. Retail portfolio showed strong quarterly disbursement of Rs 13,499 crore, which has grown by 32% year-on-year and 21% quarter-on-quarter aided by digital and data analytics. The company launched new products SME finance under its retail portfolio in fiscal 2022 and Personal Loans in fiscal 2021, which showed sustained growth momentum.

 

Wholesale portfolio continues to witness a declining trend with AUM falling to Rs 9,255 crore as on September 30, 2023, from Rs 41,731 crore as on March 31, 2022. LTFH had commenced accelerated sell down of its wholesale portfolio in Q3FY23. Based on change in business model, wholesale portfolio which was measured at amortized cost is now measured at fair value through profit and loss account. Consequent to change in business model in order to facilitate accelerated sell-down of wholesale finance, a one-time provision of Rs 2,687 crore was made during Q3FY23. The share of the wholesale portfolio has declined steadily to 12% as on September 30, 2023, from 48% as on December 31, 2021 and is expected to decline further.

 

Going forward, the growth in the business is expected to be driven by Retail (including SME Finance) segment over the near to medium term.

 

  • Well-diversified resource profile

Resource profile is spread across capital markets and bank funding. The company is a large and frequent issuer in capital markets and has strong banking relationships. Of the total borrowing of Rs 76,557 crore as on September 30, 2023, non-convertible debentures (including retail), commercial paper, external commercial borrowings (ECB) and bank borrowings (including PSL and FIs) formed 40%, 6%, 2%, and 52%, respectively. The diversified resource profile is also reflected in the competitive average borrowing cost[1] of 6.8% for the half-year ended September 30, 2023 (annualized; 6.8% for fiscal 2023). The parentage and brand name of L&T, also supports resource profile.

 

Weakness:

  • Moderate, albeit improving, asset quality

The asset quality of the lending portfolio remains moderate. Asset quality metrics have shown an inch up on account of second wave of Covid-19 pandemic, however the same is on improving trend on account of improvement in collection efficiency and controlled slippages. On a consolidated basis, gross stage 3 and net stage 3 assets improved further and stood at 3.3% and 0.8% as on September 30, 2023 (4.7% and 1.5% as March 31, 2023) for LTFH marked by strong collection efficiency across businesses. PCR was 76% as on the same date.

 

In the Infrastructure portfolio, with resolution of legacy delinquent accounts, gross stage 3 assets continue to improve. LTFH has been focusing on accelerated sell down of its wholesale portfolio which stood at 12% of AUM as on September 30, 2023, down from 42% as on September 30, 2022. LTFH had created one time provision of Rs 2,687 crore (Q3FY23) to facilitate accelerated sell down of the wholesale portfolio. Furthermore, the higher focus on retail loans, stronger underwriting and collection practices, better early warning systems, and focus on digitisation and data analytics, should continue to support improvement in asset quality. LTFH also has a specialised team to oversee recovery from stressed assets. More so, increased proportion of retail assets in the portfolio has imparted granularity to the overall AUM.

 

Management’s ability to keep the portfolio quality in check will remain a monitorable. Performance of the wholesale lending portfolios will also be closely monitored given the chunkiness in ticket size and sensitivity of borrowers in these segments to an environment of prolonged stretch in liquidity. The wholesale loan book as a proportion to the overall lending book has however seen a significant reduction and is expected to decline further, on account of growth in the retail segment and rundown of the wholesale book. Any significant deterioration in asset quality, leading to a sharp and continued decline in profitability, will be closely monitored.

 


[1] Borrowing cost = Annualised interest cost during the period divided by the average of outstanding borrowings at the beginning and the end of the period

Liquidity: Superior

The consolidated asset-liability maturity profile as on September 30, 2023, reflects cumulative positive liquidity gaps in all buckets up to one year. LTFH generally maintains liquidity to meet obligations coming up over the next 30 days. As on September 30, 2023, total debt repayment (including interest) was Rs 8,476 crore for the next three months (until December 31, 2023). Against this, liquidity of Rs 18,182 crore was available in the form of cash and liquid investments (Rs 11,852 crore) and unutilised bank limits (Rs 5,330 crore). Support from the parent is also available in the form of a line of credit (Rs. 1,000 crore). 

 

Environment, Social, and Governance (ESG) profile

The ESG profile of the LTFH group supports its already strong credit risk profile.

 

The ESG profiles of financial institutions typically factor in governance as a key differentiator between them. The sector has reasonable social impact because of its substantial employee and customer base, and can play a key role in promoting financial inclusion. While the sector does not have a direct adverse environmental impact, lending decisions may have a bearing on environment and other sustainability related factors.

 

The group has demonstrated an ongoing focus on strengthening various aspects of its ESG profile.

 

Key ESG highlights:

  • The group has integrated ESG in risk management framework across key businesses in fiscal 2022, and targets to incorporate that for all businesses by fiscal 2023.
  • The group had set a target of financing renewable/clean energy projects of 5,000 megawatt (MW) over fiscals 2021-2026. In fiscal 2021, around 1,560 MW of solar and wind energy project were financed. Furthermore, it raised Rs 200 crore through a Sustainability Linked Rupee Loan in fiscal 2022.
  • The group aims to achieve carbon neutrality by fiscal 2035 and has been working towards decarbonising operations. It reduced fiscal 2022 estimated carbon footprint by around 20%.
  • CSR activities are primarily focused on digital financial inclusion for women empowerment, disaster management, and other projects.
  • Half of the board members are independent directors, with segregation in chairman and executive positions. A dedicated investor grievance redressal mechanism is in place and the disclosures put out by it are extensive.

 

There is growing importance of ESG among investors and lenders. LTFS group’s commitment to ESG will play a key role in enhancing stakeholder confidence, given high share of foreign investors as well as access to both domestic and foreign capital markets.

Outlook: Stable

CRISIL Ratings believes LTFH will remain highly strategically important to L&T and continue to benefit from the latter’s strong support over the medium term. Furthermore, LTFH is expected to maintain its strong and diversified presence across the financial services space and a well-diversified resource profile.

Rating Sensitivity factors

Downward factors:

  • Weakening in L&T's credit risk profile by one notch could lead to a similar rating change for the merged entity LTFH
  • Any material change in the shareholding or support philosophy of L&T for the merged entity LTFH
  • Weakening in the capital structure of the merged entity LTFH, with gearing exceeding 7.5 times on a steady-state basis, and/or deterioration in asset quality leading to a substantial decline in profitability

About the Company

LTFH is a Non-Banking Finance Company (NBFC) and a subsidiary of L&T. It was incorporated in 2008 and is listed under the National Stock Exchange and Bombay Stock Exchange.  On December 04, 2023 LTFH has announced the successful completion of the merger with its subsidiaries LTF, LTICL and LTMFTL. The merger will lead to creation of a simplified ‘Single Lending Entity’; thus, housing all lending businesses under one operating NBFC. LTFH has filed requisite application for necessary registration as NBFC -ICC

 

On a consolidated basis, LTFH reported PAT and total income of Rs 1,536 crore and Rs 13,302 crore, respectively, in fiscal 2023 (against Rs 1,049 crore and Rs 12,324 crore). For half year ended September 30, 2023, company reported profit and total income were Rs 1,125 crore and Rs 6,854 crore, respectively, (against Rs 667 crore and Rs 6,393 crore), for the corresponding period previous fiscal.

Key Financial Indicators: L&T Finance Holdings Ltd (consolidated; as per Indian Accounting Standard)

For the period ended March 31

Unit

2023

2022

Total assets

Rs crore

106362

106902

Total income

Rs crore

13302

12324

PAT

Rs crore

1623

1070

Gross Stage 3

%

4.7

4.5

Return on assets (annualized)

%

1.5

1.0

Gearing

Times

3.9

4.3

 

For six months ended September 30,

Unit

2023

2022

Total assets

Rs crore

100967

107655

Total income

Rs crore

6854

6393

PAT

Rs crore

1126

669

Gross Stage 3

%

4.5

4.7

Return on assets (annualized)

%

2.2

1.2

Gearing

Times

3.5

3.9

 

Any other information: Not applicable

Note on complexity levels of the rated instrument:
CRISIL Ratings` complexity levels are assigned to various types of financial instruments and are included (where applicable) in the 'Annexure - Details of Instrument' in this Rating Rationale.

CRISIL Ratings will disclose complexity level for all securities - including those that are yet to be placed - based on available information. The complexity level for instruments may be updated, where required, in the rating rationale published subsequent to the issuance of the instrument when details on such features are available.

For more details on the CRISIL Ratings` complexity levels please visit www.crisilratings.com. Users may also call the Customer Service Helpdesk with queries on specific instruments.

Annexure - Details of Instrument(s)

ISIN

Name of the instrument

Date of issuance

Coupon rate (%)

Maturity

Date

Issue size

(Rs crore)

Complexity

level

Rating assigned

along with Outlook

NA

Non-Convertible Debentures*

NA

NA

NA

305

Simple

CRISIL AAA/Stable

NA

Preference Shares*

NA

NA

NA

1735

Complex

CRISIL AAA/Stable

INE691I07EI3

Non-Convertible Debentures#

28-Jan-20

8.45%

17-Feb-25

65

Simple

CRISIL AAA/Stable

INE691I07EJ1

Non-Convertible Debentures#

28-Jan-20

8.55%

28-Jan-30

55

Simple

CRISIL AAA/Stable

INE691I07EI3

Non-Convertible Debentures#

5-Feb-20

8.45%

17-Feb-25

35

Simple

CRISIL AAA/Stable

INE691I07EJ1

Non-Convertible Debentures#

11-Feb-20

8.55%

28-Jan-30

220

Simple

CRISIL AAA/Stable

INE691I07EO1

Non-Convertible Debentures#

30-Jun-20

8.10%

28-Jun-30

119.3

Simple

CRISIL AAA/Stable

INE476M07BY4

Non-Convertible Debentures#

9-Jul-20

7.85%

9-Jul-25

279

Simple

CRISIL AAA/Stable

INE027E07BI5

Non-Convertible Debentures#

10-Jul-20

7.75%

10-Jul-25

345

Simple

CRISIL AAA/Stable

INE691I07EO1

Non-Convertible Debentures#

13-Jul-20

8.10%

28-Jun-30

251.3

Simple

CRISIL AAA/Stable

INE691I07ER4

Non-Convertible Debentures#

13-Jul-20

7.95%

28-Jul-25

500

Simple

CRISIL AAA/Stable

INE691I07ES2

Non-Convertible Debentures#

13-Jul-20

7.90%

12-Jul-24

244.9

Simple

CRISIL AAA/Stable

INE691I07EU8

Non-Convertible Debentures#

9-Sep-20

7.66%

9-Sep-30

100

Simple

CRISIL AAA/Stable

INE691I07EV6

Non-Convertible Debentures#

16-Sep-20

7.15%

16-Sep-24

175

Simple

CRISIL AAA/Stable

INE691I07EU8

Non-Convertible Debentures#

16-Sep-20

7.66%

9-Sep-30

50

Simple

CRISIL AAA/Stable

INE476M07BZ1

Non-Convertible Debentures#

3-Nov-20

6.55%

1-Nov-24

300

Simple

CRISIL AAA/Stable

INE691I07EW4

Non-Convertible Debentures#

3-Nov-20

6.75%

1-Nov-24

200

Simple

CRISIL AAA/Stable

INE691I07EX2

Non-Convertible Debentures#

30-Dec-20

7.62%

30-Dec-30

1,500.00

Simple

CRISIL AAA/Stable

INE027E07BL9

Non-Convertible Debentures#

3-Mar-21

6.40%

1-Mar-24

450

Simple

CRISIL AAA/Stable

INE027E07BM7

Non-Convertible Debentures#

10-Mar-21

6.45%

10-May-24

50

Simple

CRISIL AAA/Stable

INE027E07BM7

Non-Convertible Debentures#

30-Apr-21

6.45%

10-May-24

300

Simple

CRISIL AAA/Stable

INE027E07BO3

Non-Convertible Debentures#

19-May-21

7.40%

19-May-31

1,000.00

Simple

CRISIL AAA/Stable

INE027E07BM7

Non-Convertible Debentures#

27-May-21

6.45%

10-May-24

200

Simple

CRISIL AAA/Stable

INE027E07BP0

Non-Convertible Debentures#

31-Aug-21

5.90%

30-Aug-24

500

Simple

CRISIL AAA/Stable

INE027E07BS4

Non-Convertible Debentures#

16-Nov-21

6.25%

15-Nov-24

215

Simple

CRISIL AAA/Stable

INE027E07BT2

Non-Convertible Debentures#

3-Dec-21

6.25%

3-Dec-24

150

Simple

CRISIL AAA/Stable

INE027E07BU0

Non-Convertible Debentures#

23-Dec-21

6.15%

23-Jan-25

300

Simple

CRISIL AAA/Stable

INE027E07BX4

Non-Convertible Debentures#

15-Jul-22

7.75%

14-Aug-25

200

Simple

CRISIL AAA/Stable

INE027E07BY2

Non-Convertible Debentures#

15-Jul-22

7.74% -7.87%

15-Sep-25

518.8

Simple

CRISIL AAA/Stable

INE027E07CA0

Non-Convertible Debentures#

29-Aug-22

7.53%

28-Nov-25

580

Simple

CRISIL AAA/Stable

INE027E07CH5

Non-Convertible Debentures#

29-Dec-22

7.95%

27-Feb-26

885.5

Simple

CRISIL AAA/Stable

INE027E07CN3

Non-Convertible Debentures#

26-May-23

7.90%

26-May-28

142.0

Simple

CRISIL AAA/Stable

INE027E07CO1

Non-Convertible Debentures#

26-May-23

7.85%

26-May-33

250.0

Simple

CRISIL AAA/Stable

INE027E07CP8

Non-Convertible Debentures#

5-Jun-23

7.91%

25-Sep-26

25.0

Simple

CRISIL AAA/Stable

INE027E07CP8

Non-Convertible Debentures#

5-Jun-23

7.91%

25-Sep-26

475.0

Simple

CRISIL AAA/Stable

INE027E07CO1

Non-Convertible Debentures#

13-Jun-23

7.85%

26-May-33

110.0

Simple

CRISIL AAA/Stable

INE027E07CQ6

Non-Convertible Debentures#

13-Sep-23

7.90%

13-Sep-33

1600.0

Simple

CRISIL AAA/Stable

INE027E07CO1

Non-Convertible Debentures#

27-Sep-23

7.85%

26-May-33

75.00

Simple

CRISIL AAA/Stable

NA

Non-Convertible Debentures*#

NA

NA

NA

8409.2

Simple

CRISIL AAA/Stable

INE027E07AX6

Retail bonds%#

23-Dec-19

8.45%

23-Dec-24

23.2

Simple

CRISIL AAA/Stable

INE027E07AY4

Retail bonds%#

23-Dec-19

8.60%

23-Dec-24

325.5

Simple

CRISIL AAA/Stable

INE027E07AZ1

Retail bonds%#

23-Dec-19

8.15%

23-Dec-24

0.8

Simple

CRISIL AAA/Stable

INE027E07BA2

Retail bonds%#

23-Dec-19

8.29%

23-Dec-24

75.3

Simple

CRISIL AAA/Stable

INE027E07BB0

Retail bonds%#

23-Dec-19

8.50%

23-Dec-26

25

Simple

CRISIL AAA/Stable

INE027E07BC8

Retail bonds%#

23-Dec-19

8.65%

23-Dec-26

398.2

Simple

CRISIL AAA/Stable

NA

Retail bonds%*#

NA

NA

NA

3592.1

Simple

CRISIL AAA/Stable

NA

Retail bonds@*#

NA

NA

NA

5000

Simple

CRISIL AAA/Stable

INE691I08537

Subordinate Debt#

10-Jun-20

8.30%

10-Jun-30

86

Complex

CRISIL AAA/Stable

INE691I08545

Subordinate Debt#

20-Jul-20

8.15%

19-Jul-30

100

Complex

CRISIL AAA/Stable

NA

Subordinate Debt#*

NA

NA

NA

814

Complex

CRISIL AAA/Stable

NA

Commercial paper programme#

NA

NA

7-365 days

26000

Simple

CRISIL A1+

NA

Long Term Loan#

NA

NA

31-Mar-25

1100

NA

CRISIL AAA/Stable

NA

Proposed Long Term Bank Loan Facility**#

NA

NA

NA

10400

NA

CRISIL AAA/Stable

INE235P07035

Non-Convertible Debentures&

10-Jun-14

9.70%

10-Jun-24

5

Simple

CRISIL AAA/Stable

INE235P07035

Non-Convertible Debentures&

10-Jun-14

9.70%

10-Jun-24

90

Simple

CRISIL AAA/Stable

INE235P07043

Non-Convertible Debentures&

28-Jan-15

8.49%

28-Jan-25

100

Simple

CRISIL AAA/Stable

INE235P07050

Non-Convertible Debentures&

28-Jan-15

8.51%

28-Jan-30

100

Simple

CRISIL AAA/Stable

INE235P07100

Non-Convertible Debentures&

4-Dec-15

8.55%

4-Dec-25

15

Simple

CRISIL AAA/Stable

INE235P07134

Non-Convertible Debentures&

7-Jan-16

8.63%

7-Jan-26

153

Simple

CRISIL AAA/Stable

INE235P07159

Non-Convertible Debentures&

7-Jan-16

8.63%

7-Jan-36

10

Simple

CRISIL AAA/Stable

INE235P07142

Non-Convertible Debentures&

7-Jan-16

8.63%

7-Jan-31

15

Simple

CRISIL AAA/Stable

INE235P07183

Non-Convertible Debentures&

24-Feb-16

8.73%

24-Feb-26

135

Simple

CRISIL AAA/Stable

INE235P07209

Non-Convertible Debentures&

24-Feb-16

8.73%

22-Feb-36

5

Simple

CRISIL AAA/Stable

INE235P07191

Non-Convertible Debentures&

24-Feb-16

8.73%

24-Feb-31

5

Simple

CRISIL AAA/Stable

INE235P07241

Non-Convertible Debentures&

22-Mar-16

8.75%

20-Mar-26

90

Simple

CRISIL AAA/Stable

INE235P07274

Non-Convertible Debentures&

29-Mar-16

8.72%

27-Mar-26

300

Simple

CRISIL AAA/Stable

INE235P07316

Non-Convertible Debentures&

6-May-16

8.67%

6-May-26

20

Simple

CRISIL AAA/Stable

INE235P07399

Non-Convertible Debentures&

10-Jun-16

8.75%

10-Jun-26

10

Simple

CRISIL AAA/Stable

INE235P07431

Non-Convertible Debentures&

17-Jun-16

8.80%

17-Jun-26

50

Simple

CRISIL AAA/Stable

INE235P07456

Non-Convertible Debentures&

23-Jun-16

8.80%

23-Jun-26

105

Simple

CRISIL AAA/Stable

INE235P07464

Non-Convertible Debentures&

13-Jul-16

8.77%

13-Jul-26

15

Simple

CRISIL AAA/Stable

INE235P07498

Non-Convertible Debentures&

28-Sep-16

8.43%

28-Sep-26

72.75

Simple

CRISIL AAA/Stable

INE235P07506

Non-Convertible Debentures&

3-Oct-16

8.43%

1-Oct-26

102.25

Simple

CRISIL AAA/Stable

INE235P07514

Non-Convertible Debentures&

3-Oct-16

8.43%

3-Oct-31

25

Simple

CRISIL AAA/Stable

INE235P07548

Non-Convertible Debentures&

13-Oct-16

8.30%

13-Oct-26

75

Simple

CRISIL AAA/Stable

INE235P07555

Non-Convertible Debentures&

20-Oct-16

8.30%

20-Oct-26

130

Simple

CRISIL AAA/Stable

INE235P07571

Non-Convertible Debentures&

15-Nov-16

8.15%

13-Nov-26

25

Simple

CRISIL AAA/Stable

INE235P07605

Non-Convertible Debentures&

15-Dec-16

8.05%

15-Dec-23

25

Simple

CRISIL AAA/Stable

INE235P07688

Non-Convertible Debentures&

4-May-17

8.08%

3-May-24

125

Simple

CRISIL AAA/Stable

INE235P07704

Non-Convertible Debentures&

16-May-17

8.08%

16-May-24

40

Simple

CRISIL AAA/Stable

INE235P07720

Non-Convertible Debentures&

31-May-17

8.07%

31-May-24

35

Simple

CRISIL AAA/Stable

INE235P07738

Non-Convertible Debentures&

31-May-17

8.20%

31-May-32

105

Simple

CRISIL AAA/Stable

INE235P07753

Non-Convertible Debentures&

8-Jun-17

8.08%

10-Jun-24

100

Simple

CRISIL AAA/Stable

INE235P07779

Non-Convertible Debentures&

14-Jun-17

8.07%

14-Jun-24

25

Simple

CRISIL AAA/Stable

INE235P07795

Non-Convertible Debentures&

16-Jun-17

8.07%

14-Jun-24

50

Simple

CRISIL AAA/Stable

INE235P07886

Non-Convertible Debentures&

26-Jun-18

9.30%

26-Jun-24

247.7

Simple

CRISIL AAA/Stable

INE235P07894

Non-Convertible Debentures&

6-Jul-18

9.30%

5-Jul-24

160

Simple

CRISIL AAA/Stable

INE235P07902

Non-Convertible Debentures&

23-Jul-18

9.05%

23-Jul-25

15

Simple

CRISIL AAA/Stable

INE235P07936

Non-Convertible Debentures&

1-Feb-19

9.15%

11-Mar-24

25

Simple

CRISIL AAA/Stable

INE235P07944

Non-Convertible Debentures&

20-Feb-19

9.22%

20-Feb-34

20

Simple

CRISIL AAA/Stable

INE235P07951

Non-Convertible Debentures&

24-Sep-19

8.42%

24-Sep-29

700

Simple

CRISIL AAA/Stable

INE235P07969

Non-Convertible Debentures&

25-Oct-19

8.80%

25-Oct-29

12

Simple

CRISIL AAA/Stable

INE235P07977

Non-Convertible Debentures&

8-Jan-20

8.75%

8-Jan-27

15.6

Simple

CRISIL AAA/Stable

INE235P07AC5

Non-Convertible Debentures&

21-Oct-20

8.10%

21-Oct-31

26

Simple

CRISIL AAA/Stable

INE235P07AD3

Non-Convertible Debentures&

21-Oct-20

8.10%

21-Oct-32

26

Simple

CRISIL AAA/Stable

INE235P07AE1

Non-Convertible Debentures&

21-Oct-20

8.10%

21-Oct-33

26

Simple

CRISIL AAA/Stable

INE235P07AF8

Non-Convertible Debentures&

21-Oct-20

8.10%

20-Oct-34

26

Simple

CRISIL AAA/Stable

INE235P07AG6

Non-Convertible Debentures&

21-Oct-20

8.10%

19-Oct-35

26

Simple

CRISIL AAA/Stable

INE235P07AH4

Non-Convertible Debentures&

25-Nov-20

7.95%

25-Nov-31

10

Simple

CRISIL AAA/Stable

INE235P07AI2

Non-Convertible Debentures&

25-Nov-20

7.95%

25-Nov-32

10

Simple

CRISIL AAA/Stable

INE235P07AJ0

Non-Convertible Debentures&

25-Nov-20

7.95%

25-Nov-33

10

Simple

CRISIL AAA/Stable

INE235P07AK8

Non-Convertible Debentures&

25-Nov-20

7.95%

24-Nov-34

10

Simple

CRISIL AAA/Stable

INE235P07AL6

Non-Convertible Debentures&

25-Nov-20

7.95%

23-Nov-35

10

Simple

CRISIL AAA/Stable

NA

Non-Convertible Debentures*&

NA

NA

NA

857.5

Simple

CRISIL AAA/Stable

NA

Preference shares^*&

NA

NA

NA

683.21

Complex

CRISIL AAA/Stable

INE235P07985

Long term principal protected market linked debentures&

31-Jan-20

8.17%

28-Feb-25

50

Highly Complex

CRISIL PP-MLD AAA/Stable

INE235P07993

Long term principal protected market linked debentures&

25-Feb-20

8.70%

25-Mar-25

250

Highly Complex

CRISIL PP-MLD AAA/Stable

NA

Long term principal protected market linked debentures*&

NA

NA

NA

513.8

Highly Complex

CRISIL PP-MLD AAA/Stable

* Not yet issued

#transferred from L&T Finance Limited (LTF)

& transferred from L&T Infra Credit Limited (LTICL)

%Public Issue of Secured Redeemable Non-Convertible Debentures and/or Unsecured Subordinated Redeemable Non-Convertible Debentures

@Public issue of secured redeemable non-convertible debentures

**Interchangeable with short term bank facility

^cumulative redeemable non-convertible

 

Annexure - Details of Rating Withdrawn

ISIN

Name of Instrument

Issue Date

Coupon

Rate (%)

Maturity 

Date

Issue Size

(Rs. Cr)

Complexity

 Level

Rating assigned with outlook

NA

Commercial Paper

NA

NA

7-365 days

2500

Simple

Withdrawn

 

Annexure – List of entities consolidated

Names of Entities Consolidated

Extent of Consolidation

Rationale for Consolidation

L&T Finance Holdings Ltd

Full

Holding company

L&T Mutual Fund Trustee Ltd*

Full

Subsidiary

L&T Financial Consultants Ltd

Full

Subsidiary

L&T Finance Ltd*

Full

Subsidiary

L&T Infra Investment Partners Advisory Pvt Ltd

Full

Subsidiary

L&T Infra Investment Partners Trustee Pvt Ltd

Full

Subsidiary

L&T Infra Credit Ltd*

Full

Subsidiary

Mudit Cement Pvt Ltd

Full

Subsidiary

L&T Infra Investment Partners

Proportionate

Subsidiary

*Ceased to exist from date December 04, 2023

Annexure - Rating History for last 3 Years
  Current 2023 (History) 2022  2021  2020  Start of 2020
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund Based Facilities LT 11500.0 CRISIL AAA/Stable   --   --   --   -- --
Commercial Paper ST 26000.0 CRISIL A1+ 24-01-23 CRISIL A1+ 16-09-22 CRISIL A1+ 27-04-21 CRISIL A1+ 05-05-20 CRISIL A1+ CRISIL A1+
      --   -- 31-03-22 CRISIL A1+   -- 01-04-20 CRISIL A1+ --
Non Convertible Debentures LT 25570.8 CRISIL AAA/Stable 24-01-23 CRISIL AAA/Stable 16-09-22 CRISIL AAA/Stable 27-04-21 CRISIL AAA/Stable 05-05-20 CRISIL AAA/Stable CRISIL AAA/Stable
      --   -- 31-03-22 CRISIL AAA/Stable   -- 01-04-20 CRISIL AAA/Stable --
Preference Shares LT 2418.21 CRISIL AAA/Stable 24-01-23 CRISIL AAA/Stable 16-09-22 CRISIL AAA/Stable 27-04-21 CRISIL AAA/Stable 05-05-20 CRISIL AAA/Stable CRISIL AAA/Stable
      --   -- 31-03-22 CRISIL AAA/Stable   -- 01-04-20 CRISIL AAA/Stable --
Retail Bond LT 9440.1 CRISIL AAA/Stable   --   --   --   -- --
Subordinated Debt LT 1000.0 CRISIL AAA/Stable   --   --   --   -- --
Long Term Principal Protected Market Linked Debentures LT 813.8 CRISIL PPMLD AAA/Stable   --   --   --   -- --
All amounts are in Rs.Cr.
Annexure - Details of Bank Lenders & Facilities
Facility Amount (Rs.Crore) Name of Lender Rating
Long Term Loan 1100 Canara Bank CRISIL AAA/Stable
Proposed Long Term Bank Loan Facility** 10400 Not Applicable CRISIL AAA/Stable

**Interchangeable with short term bank facility 

Criteria Details
Links to related criteria
Rating Criteria for Finance Companies
CRISILs Bank Loan Ratings - process, scale and default recognition
Rating criteria for hybrid debt instruments of NBFCs/HFCs
CRISILs Criteria for rating short term debt
Criteria for Notching up Stand Alone Ratings of Companies based on Parent Support
CRISILs Criteria for Consolidation

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CRISIL Ratings pioneered the concept of credit rating in India in 1987. With a tradition of independence, analytical rigour and innovation, we set the standards in the credit rating business. We rate the entire range of debt instruments, such as bank loans, certificates of deposit, commercial paper, non-convertible/convertible/partially convertible bonds and debentures, perpetual bonds, bank hybrid capital instruments, asset-backed and mortgage-backed securities, partial guarantees and other structured debt instruments. We have rated over 33,000 large and mid-scale corporates and financial institutions. We have also instituted several innovations in India in the rating business, including ratings for municipal bonds, partially guaranteed instruments and infrastructure investment trusts (InvITs).
 
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CRISIL Ratings uses the prefix 'PP-MLD' for the ratings of principal-protected market-linked debentures (PPMLD) with effect from November 1, 2011, to comply with the SEBI circular, "Guidelines for Issue and Listing of Structured Products/Market Linked Debentures". The revision in rating symbols for PPMLDs should not be construed as a change in the rating of the subject instrument. For details on CRISIL Ratings' use of 'PP-MLD' please refer to the notes to Rating scale for Debt Instruments and Structured Finance Instruments at the following link: https://www.crisilratings.com/en/home/our-business/ratings/credit-ratings-scale.html