Life Insurance Corporation of India (LIC) has subscribed to non-convertible debentures (NCDs) worth Rs 5,000 crore of Bajaj Finance Limited, the state-run insurer informed the exchanges on Thursday, August 27.
The country's largest life insurer has subcribed to five lakh NCDs of the face value of Rs 1 lakh each of the NBFC.
The exchange filing read, " Life Insurance Corporation of India has subscribed 500,000 Nonconvertible Debentures (NCDs) of Face Value of Rs. 100,000/- each amounting to Rs. 5000 crores of Bajaj Finance Limited."
The funds raised through this issue will be utilised for general business purpose of the company; including various financing activities, to repay company's existing loans, capital expenditure and working capital requirements.
Prior to this, Bajaj Finance informed the exchanges that it has allotted up to filing lakh non-convertible debentures of Rs 1 lakh each, worth Rs 5,000 crore.
"The Debenture Allotment Committee of the Company has at its meeting held today i.e., 27 August 2026, allotted 500,000 NCDs, at face value of Rs. 1 Lakh per NCD aggregating to Rs. 5000 crore on private placement basis," the filing said.
The payment of coupon/interest and principal is set to be done on August 27 of each succeeding year starting today, till 2030. The NCDs will mature on Aug. 27, 2036, as per the filing. An interest of 8.15% per annum has been offered on the coupons.
In Q1FY27, Bajaj Finance posted a solid growth in net profit and interest income even as asset quality soured. Consolidated profit surged 27.4% year-on-year to Rs 5,986 crore in the April-June quarter, compared to an estimate of Rs 4,700 crore.
Meanwhile, LIC reported a strong performance for the June quarter, with net profit jumping 23% year-on-year, driven by healthy premium growth, a sharp improvement in new business profitability and higher investment income. The company posted a net profit of Rs 13,492 crore for the first quarter, compared with Rs 10,987 crore in the corresponding period last year.
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