Life Insurance Corporation of India (LIC) has made a significant debt investment in Bajaj Finance Limited through the subscription of non-convertible debentures (NCDs).
Investment Details
- Instrument: Non-convertible Debentures (NCDs)
- Quantity: 500,000 units
- Face Value: ₹100,000 per NCD
- Total Investment Amount: ₹5,000 crores
- Price per NCD: ₹100,000
- Payment Method: Bank/RTGS Payment
- Transaction Date: August 27, 2026
- Transaction Time: 10:30 AM
Target Entity Information
Bajaj Finance Limited is a deposit-taking Non-Banking Financial Company (NBFC-D) registered with the Reserve Bank of India. The company is classified as:
- NBFC-Investment and Credit Company (NBFC-ICC)
- NBFC-UL (Upper Layer) by RBI
- Subsidiary of Bajaj Finserv Limited (51.3% ownership)
Transaction Characteristics
- Related Party Transaction: No
- Governmental Approvals Required: None
- Arm's Length Transaction: Confirmed
- Completion Date: August 27, 2026 (same day execution)
Purpose of Funds
The funds raised through this NCD issue will be utilized by Bajaj Finance Limited for:
- Augmenting long-term resources
- General business purposes including various financing activities
- Repayment of existing loans
- Capital expenditure
- Working capital requirements