LIC Housing Finance Greenlights Massive Borrowing Plan

LIC Housing Finance has received approval from its board to borrow Rs 1.23 lakh crore through various financial instruments for the 2025-2026 financial year. The approved borrowing budget aggregates to Rs 1,22,500 crore, enabling multiple channels of raising funds. Shares rose 3.49% following the announcement.

LIC Housing Finance announced on Wednesday that its board has approved a borrowing plan worth Rs 1.23 lakh crore for the financial year 2025-2026. This significant development has been endorsed based on recommendations from the audit committee.

The approved borrowing budget stands at Rs 1,22,500 crore and allows the company to explore various channels to raise funds. These include loans, redeemable non-convertible debentures, zero coupon bonds, subordinate debt, upper tier II bonds, commercial paper, external commercial borrowing, foreign currency bonds, securitisation, and more. The funds may be acquired through private placement, public issue, or refinancing from the National Housing Bank (NHB).

Following this announcement, LIC Housing Finance saw a notable increase in its stock performance, with shares closing at Rs 521.20 per share, marking a 3.49% rise from the previous day's close on the BSE.

(With inputs from agencies.)