By Admin 
Adani ports: LIC (Life Insurance Corporation of India), the largest insurance company in the public sector in India, has fully bought a non-convertible debenture issue of Rs 5,000 crore from Adani Ports and Special Economic Zone. If you say this in easy language, LIC has given a loan of 5 thousand crores to Adani Ports.
The company issues NCD to meet its capital requirements and pays interest to the investor instead. This is for a limited period, after which the investor gets his capital amount back.
After 15 years, LIC will have to return full money
This bond is 15 years old, on which interest of 7.75 percent annually will have to be paid. That is, after 15 years, Adani Ports will have to return the entire Rs 5,000 crore to LIC and then the company will pay the annual interest at the rate of 7.75 percent. The company will use this amount to repay its old loan and pursue business.
According to a report by The Economic Times, LIC already has an 8.06 percent stake in Adani Ports. The Adani Group is currently trying to increase the deadline to repay the loan and take a loan at a low interest rate. Due to these efforts, his average interest rate was reduced by 7.92 percent in FY 25, which was 9.02 percent last year. LIC had invested Rs 80,000 crore in corporate bonds by the end of FY25.
There is so much debt on Adani Ports
At the same time, till 31 March, there was a debt of Rs 36,422 crore on Adani Ports. While Ebitda was Rs 20,471 crore. This reduced its net debut-to -bita ratio to 1.78 times, which is better than 2.3 times the previous year. The Adani Ports and Special Economic Zone aims to increase its cargo handling more than twice to 1 billion tonnes by FY 2030. Due to this, the company is increasing investment in logistics and marine services.
Also read:
India’s economy is running away from the bullet train road, the country’s GDP growth was 7.4 percent in the March quarter