LIC Housing Finance on Wednesday said it will seek shareholders' approval in the upcoming annual general meeting this month to raise up to Rs 50,500 crore by issuing debt securities or other hybrid instruments on a private placement basis.
The company's annual general meeting (AGM) is scheduled to take place through video conference and other audio-visual means on September 28, 2020, in compliance with Covid-19 related regulations.
The approval of the members is being sought by way of "special resolution, authorising the board of directors to issue NCDs and/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 (Rupees Fifty Thousand Five Hundred Crore only) on a private placement basis," it said in a regulatory filing.
The non-convertible debentures (NCDs) proposed to be issued by the company for cash may be either at par or premium or a discount to face value, depending upon the prevailing market conditions at the time of issues, it added.
The company said it may issue the debt instruments in one or more tranches during the period commencing from the date of commencing of this meeting up to the date of next AGM.
LIC Housing Finance said its overall borrowing power is of Rs 3 lakh crore and the proposed fundraise plan is within the limit.
Shares of the company settled at Rs 303.80 apiece on BSE, up 0.05 per cent from the previous close.
Deccan Herald is on WhatsApp Channels| Join now for Breaking News & Editor's Picks