Last updated: 20 Jan, 2021 | 10:02 am
About L&T Finance Holdings rights issue
Is it necessary to apply for all eligible shares?
No. In case you are eligible to invest for 10 shares in the rights issue, you can choose to apply for only 5 shares, and renounce 5 shares.
In case you do not want to apply for the rights, you can sell these Rights Entitlement (RE) in the LIVE market from your holdings. You will find this in your broker’s trading portal.
Can I apply for more shares than I’m eligible for?
Yes, you can. As a lot of eligible investors may wish to not exercise their rights to the full extent, you can apply for more than your eligibility. Further, as the shareholders don’t hold shares in multiples of 15, there will be many unclaimed RE available.
We recommend that you subscribe to this rights issue as L&T Finance Holdings, as the business is seeing good improvement after the Covid crisis. The consensus price target of 12 analysts is around ₹103.
For Oct-Dec 20 period, the company has reported healthy disbursements at Rs 10,772 crore (up 12.7% YoY/51% QoQ) on the back of a strong recovery in rural and infra segments. This is after seven straight quarters of decline in disbursements. On a sequential basis, loan disbursements almost doubled, led by the wholesale segment. There has also been a healthy pick-up in tractor loans, rural loans and housing loans.