L&T Finance Holdings (LTFH) plans to raise up to Rs 2,000 crore by issuing preference shares through a public offer or private placement, the non-banking finance company said in its annual report for 2019-20.

The company will seek shareholders’ approval to the proposal at the annual general meeting (AGM) scheduled for July 28 through an audio/visual mode, the report said.

The company said it will create, issue and allot 20 crore cumulative compulsorily redeemable non-convertible preference shares of a face value of Rs 100 each for cash at par or at premium aggregating to Rs 2,000 crore.

The preference shares will be allotted to various persons either through a public offer or a private placement, in one or more tranches.

LTFH said the steady growth in the operations of the subsidiaries of the company has necessitated regular infusion of equity and tier I or tier II debt in its subsidiaries.

“Being the holding company, the company would need to raise funds for such infusion. The company would also need funds for its working capital requirements,” the company said.

Deal terminated

L&T Finance Holdings on Friday said the deal to sell its fully owned subsidiary L&T Capital Markets (Middle East) to Proud Securities and Credits has been terminated in absence of regulatory approvals.

In November 2019, it had informed about execution of a share purchase agreement to sell its 100 per cent stake in L&T Capital Markets (Middle East) Limited to Proud Securities and Credits Private Limited (purchaser).