Life Insurance Corporation of India (LIC) has subscribed to 500,000 Non-convertible Debentures (NCDs) of Bajaj Finance Limited, with a face value of ₹100,000/- each. This significant investment totals ₹5,000 crore. The NCDs carry an interest rate of 7.75% per annum and are set to mature on August 27, 2026. This move highlights substantial institutional backing for Bajaj Finance’s capital-raising initiatives.
LIC Announces Major Investment in Bajaj Finance NCDs
Life Insurance Corporation of India (LIC) has made a substantial investment by subscribing to 500,000 Non-convertible Debentures (NCDs) issued by Bajaj Finance Limited. Each NCD has a face value of ₹100,000/-, bringing the total investment to an impressive ₹5,000 crore. This strategic placement demonstrates significant institutional support for Bajaj Finance’s financial instruments and growth plans.
Investment Details and Rationale
The NCDs subscribed by LIC carry a coupon rate of 7.75% per annum, with a maturity date of August 27, 2026. The funds raised by Bajaj Finance are intended to augment its long-term resources and will be utilized for its general business purposes. This includes various financing activities, repayment of existing loans, capital expenditure, and working capital requirements. The investment is categorized as a bank/RTGS payment and is part of Bajaj Finance’s broader strategy to strengthen its capital base.
Background on Bajaj Finance
Bajaj Finance Limited (BFL) is a subsidiary of Bajaj Finserv Limited, holding a 51.3% ownership stake. It operates as a deposit-taking Non-Banking Financial Company (NBFC-D), registered with the Reserve Bank of India (RBI). BFL is classified as a NBFC-Investment and Credit Company (NBFC-ICC) and is further categorized as an NBFC-UL (Upper layer) by the RBI. The company has a history of robust performance and a significant presence in the Indian financial services sector.
Source: BSE
