Bajaj Finance Raises ₹5,000 Crore From LIC Through NCD Issue
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LIC has subscribed to ₹5,000 crore of Bajaj Finance’s NCDs carrying an 8.15% annual coupon, with the funds to be used for financing, loan repayment, capex and working capital.
Life Insurance Corporation of India (LIC) has subscribed to non-convertible debentures (NCDs) worth ₹5,000 crore issued by Bajaj Finance Limited, according to an exchange filing on 27 August 2026.
LIC subscribed to 5 lakh NCDs with a face value of ₹1 lakh each, taking the total value of the subscription to ₹5,000 crore. Bajaj Finance had separately informed the exchanges that its Debenture Allotment Committee had approved the allotment of the NCDs on a private placement basis.
What Are The Details Of Bajaj Finance’s ₹5,000 Crore NCD Issue?
The NCDs carry an interest rate of 8.15% per annum. According to the filing, coupon interest and principal payments are scheduled to be made annually on 27 August, beginning in 2027. The NCDs have a maturity date of 27 August 2036, giving the debt securities a 10-year tenure.
The issue was made through private placement, with LIC subscribing to the entire ₹5,000 crore tranche covered in the filing.
How Will Bajaj Finance Use The Funds?
Bajaj Finance intends to use the funds raised through this NCD issuance primarily for various financing activities and to meet existing and future funding requirements. The funds raised may also be used to repay outstanding borrowings, meet capital expenditure requirements and support the company's working capital needs.
How Did Both Companies Perform In Q1 FY27?
As reported by NDTV Profit, Bajaj Finance's consolidated net profit rose 27.4% year-on-year to ₹5,986 crore in Q1 FY27. At the same time, the company's asset quality came under pressure during the quarter, even as net profit and interest income recorded growth.
LIC reported a 23% year-on-year increase in net profit for the June quarter. Its profit stood at ₹13,492 crore, compared with ₹10,987 crore in the corresponding quarter of the previous year. The increase was attributed to healthy premium growth, an improvement in new business profitability and higher investment income.
On 27 August, Bajaj Finance shares closed at ₹1,083.0, while LIC shares ended the day at ₹413.95 on the National Stock Exchange.
Also Read - SEBI Proposes Exemption From Merchant Banker Requirement For Small-Value Debt Issues
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
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