LIC-Owned Finance Company to Decide on NCD Allotment in Upcoming Board Meeting

A finance company owned by Life Insurance Corporation of India (LIC) is planning something important soon. It has set a date for a board meeting where it will decide whether to go ahead with issuing NCDs — short for Non-Convertible Debentures.

So, What’s Going On?

This LIC-backed NBFC (Non-Banking Financial Company) is looking to raise money. To do that, it plans to issue NCDs, which are like long-term loans it takes from investors. In return, the company pays a fixed interest regularly, but the investors won’t get shares in the company — hence the name “non-convertible.”

The board will meet in the next few days to discuss all the details — how many NCDs will be issued, at what interest rate, and when they’ll be made available.

Why Is This a Big Deal?

For the company, raising money through NCDs can help it fund its future plans — whether it’s expanding its operations, lending more money, or just managing day-to-day business smoothly.

For regular investors, NCDs can be a safer way to earn fixed income, especially when offered by a well-known name like an LIC-owned company. Since LIC has a strong reputation in the financial world, many people might feel more comfortable putting their money in something it backs.

What Are NCDs, Really?

Think of NCDs like giving a loan to a big company. You, as the investor, lend your money to the company for a few years. In return, they agree to pay you interest regularly — say every six months or once a year — until the full amount is paid back after a fixed period.

These aren’t like stocks, so you won’t get ownership or dividends. But the returns are steady, and that’s why many risk-averse investors like NCDs, especially from companies with a strong backing.

Should You Be Watching This?

Absolutely. If you’re someone who likes steady income and is not too keen on the ups and downs of the stock market, this could be an interesting opportunity. But remember, it’s always smart to wait for the full details — like the interest rate, term, and credit rating — before making any decisions.

Even though this is coming from an LIC-owned company, investors should still do their own research or talk to a financial advisor to understand if this kind of investment fits their needs.

What’s Next?

Once the board meets and takes a final decision, the company will likely make a public announcement with all the terms and timelines. That’s when we’ll know exactly how much they’re planning to raise, and how investors can participate.