L&T Finance Holdings is exploring a plan to raise around $450 million (Rs 3,367.5 crore) through a rights issue, people familiar with the matter said.

The financial services arm of Larsen & Toubro has started discussing the fundraising with potential advisers, said the people, who asked not to be identified as the matter is private.

L&T Finance’s parent, India’s largest engineering and construction company, has agreed it would buy any unsold shares in the offering, the people said.

No final decision has been made regarding the amount to be raised or the share sale’s timing, and the company can still decide not to proceed with the fundraising plan, the people said.