Life Insurance Corporation of India (LIC) on Thursday morning subscribed to 500,000 Non-Convertible Debentures (NCDs) of Bajaj Finance Limited.
The face value of each NCD is ₹1 lac, making the total subscription amount Rs. 5,000 crores.
Bajaj Finance Limited is a deposit-taking Non-Banking Financial Company (NBFC-ICC) and a subsidiary of Bajaj Finserv Limited.
Bajaj Finance, which disclosed the transaction in a separate filing, said it would utilize the funds raised to augment long-term resources, including repaying existing loans.
LIC shares closed 0.19% lower at ₹414.50 on Thursday. Bajaj finance shares closed unchanged at ₹1,085 after opening the day significantly higher.