LIC BACKED NBFC IN THE NEWS AFTER ISSUING COMMERCIAL PAPERS

Shares of

were in the news after the company announced the allotment of 700 commercial papers of the face value of Rs 5 lakh each in which the company raised Rs 33.72 crore. On redemption of the commercial papers, the company will pay Rs 35 crore. The said commercial papers were allotted on October 14 and will be up for redemption on March 25 next year, making the tenure of 162 days from allotment. These Commercial Papers carry a yield of 8.50%. This small-cap NBFC stock is part of LIC's stock portfolio as LIC owns 1.12% stake in the company as of the Jun25 quarter. However, despite the strong trend visible over the last two months, stock price has seen a 24% correction in the last one year and 19% correction on a year-to-date basis.