Life Insurance Corporation of India (LIC) has subscribed to ₹5,000 crore worth of secured non-convertible debentures (NCDs) via private placement, marking a significant investment by the state-run insurer. According to the latest exchange filing, LIC subscribed to 5 lakh NCDs, each with a face value of ₹1 lakh, making this a substantial capital infusion into the NBFC. The Debenture Allotment Committee approved the issuance on August 27, 2026, with the funds raised to be utilized for general business purposes including financing activities, loan repayment, capital expenditure and working capital requirements.
The secured NCDs offer superior protection to investors through comprehensive security arrangements. As reported in the latest filing, the principal amount and interest are secured by a first pari-passu charge on book debts and loan receivables. For original investors in the tranche, the asset cover is maintained at 1.10 times the sum due at all times until redemption, while subsequent investors hold security with an asset cover of 1 times. Additionally, investors in the initial tranche have specific rights linked to credit ratings: if the instrument's rating is downgraded to AA- or below, original investors may increase the interest rate by up to 25 basis points for every notch of downgrade. If the rating falls to A or below, original investors may recall the outstanding principal along with accrued interest and compensation by providing a 30-day notice.
Bajaj Finance reported strong financial results for the first quarter of FY27, with consolidated profit surging 27.4% year-on-year to ₹5,986 crore in the April-June quarter. According to results announced on Thursday, this performance exceeded analyst estimates of ₹4,700 crore. Revenue from operations rose 19.58% YoY to ₹23,165.45 crore during the quarter. The company's strong financial performance provides a solid foundation for this significant capital raising exercise.
The company showed improvement in asset quality metrics during Q1 FY27. As reported in the results, gross non-performing loans share fell to 0.96% from 1.03% in the previous quarter. Net NPA came in at 0.39% versus 0.41% in the March quarter. Pre-provisioning operating profit increased by 22% to ₹10,137 crore, while loan losses and provisions increased to ₹1,993 crore from ₹1,969 crore in the same quarter of financial year 2025.
The NCDs carry a coupon rate of 8.15% per annum with a 10-year tenure maturing on August 27, 2036. Interest payments will be made annually, with the first coupon due on August 27, 2027. The payment of coupon/interest and principal is set to be done on August 27 of each succeeding year starting today, till 2030. Shares of Bajaj Finance opened 0.16% lower but later recovered to trade 0.3% higher at ₹1,085.30 on the BSE as of latest trading. The successful completion of this ₹5,000 crore secured NCD allotment at an 8.15% coupon rate demonstrates strong investor confidence in the company's creditworthiness and growth prospects.
