InvestorQ : Why is LIC planning to raise Rs.50,000 crore in the market this year?
Rutuja Nigam made post

Why is LIC planning to raise Rs.50,000 crore in the market this year?

Answer
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4 weeks ago


LIC Housing Finance will raise Rs.50,500 crore in tranches via the issue of debt securities or other hybrid instruments on a private placement basis. These will be subject to the approval in the AHM scheduled on 28 September 2020.

The special approval is being sought as part of a special resolution, The idea is to authorise the board to issue debt and hybrid instruments that can be classified as Tier II capital for a Housing Finance company so as to help the company meet its capital adequacy needs.

Most likely, LIC Housing would issue these debt instruments in one or more tranches during the current financial year subject to approval in the AGM. LIC Housing has already approved an overall limit of Rs.3 trillion for borrowing and they need to firepower post COVID.