LIC Housing Finance plans to raise Rs 50,500 cr in debt; to seek shareholders’ nod in upcoming AGM

By: |
Updated: Sep 02, 2020 5:27 PM

LIC Housing Finance will seek shareholders' approval in the upcoming annual general meeting this month to raise Rs 50,500 crore.

LIC housing finance, Rs 50,500 crore, home finance, house finance, house loanLIC Housing Finance’s annual general meeting (AGM) will take place on 28 September 2020, in compliance with COVID-19 related regulations.

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’.

Also Read: Brokerages gung-ho on Bharti Airtel stock after AGR verdict, most say ‘Buy’; check upside

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.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1HUL, HDFC Bank, Kotak Mahindra lead 7 of 10 most valued firms to lose Rs 59,260 cr in m-cap
2Indian market ‘attractive’ proposition for FPIs; net investment at Rs 3,944 cr in September so far
3Bank of India gets shareholders approval for raising Rs 8,000 crore