LIC Housing Finance will seek shareholders' approval in the upcoming annual general meeting this month to raise Rs 50,500 crore.
LIC Housing Finance plans to raise up to Rs 50,500 crore in debt, in a mega fundraising move. The company will seek shareholders’ approval in the upcoming annual general meeting this month to raise the sum by issuing debt securities or other hybrid instruments on a private placement basis, it said in a BSE filing. The company’s annual general meeting (AGM) will take place on 28 September 2020, in compliance with COVID-19 related regulations. LIC Housing Finance also said that its overall borrowing power is of Rs 3 lakh crore and the proposed fundraising plan is within the limit.
The company further underlined that as of 31 March 2020, there were no non-convertible debentures (NCDs) that have not been claimed by the investors or not paid by the company after the date on which the said NCDs became due for redemption. Hence, the amount of NCD remaining unclaimed or unpaid beyond the due date is ‘Nil’.
In the regulatory filing, LIC Housing Finance said that the approval of the members is being sought by way of ‘special resolution, authorising the board of directors to issue NCDs or any other hybrid instruments which can be classified as being Tier II capital under the provisions of the Housing Finance Companies (NHB) Directions, 2010, up to an aggregate amount not exceeding Rs 50,500 crore on a private placement basis. The debt instruments will be issued in tranches during the period 28 September, up to the date of the next AGM. Meanwhile, depending upon the prevailing market conditions at the time of issues, the proposed NCDs for cash may be either at par, premium, or at a discount to face value.