Kathmandu. India’s largest insurance company LIC has staked a big stake in the Adani Group.
LIC has bought the entire non-convertible debenture (NCD) issue of Adani Ports for Rs 5,000 crore. This means LIC has given a loan of Rs 5,000 crore to Adani Ports.
Adani Ports is the largest private port operator in the country. The company said it will use the proceeds from LIC to repay its old loans and expand its business.
The company wants to replace its old debt with low-interest loans. This will benefit the company as it will have to pay lower interest.
This is a 15-year bond. Lic will get 7.75 percent interest per annum. This is one of the longest-term bonds issued by the Adani group in recent months. This means Adani Ports will have to return the money to LIC after 15 years and LIC will get 7.75 per cent interest on it.
LIC currently holds an 8.06 per cent stake in Adani Ports. The Gautam Adani-led Adani group is trying to extend its loan repayment period and take loans at lower interest rates. – Agency
