Tata Capital Housing Finance (TCHF) raised Rs.1000 crore from LIC of India.

Life Insurance Corporation, India’s biggest insurer, has invested Rs 1000 crore in Tata Capital Housing Finance (TCHF). Three people with direct knowledge said this, in the wake of signs that the debt market is improving. More than a year ago, the infrastructure giant IL&FS induced a financial crunch that kept the most powerful domestic institutional investor away from taking normal bets on private companies. “The company wanted to raise Rs 1500 crore, but it shut down subscriptions to one major investor,” one of the above-listed persons said.

The company placed those bonds directly with LIC. These securities offered 8.35% with phased maturities up to 10 years. The price is 183 basis points higher than the benchmark yield.

Rajiv Sabharwal, Tata Capital, CEO, stated in an email, “For business operations, TCHFL raises funds on a time to time basis. This fundraising has received a bid of Rs 1000 crore for 10-years of Non-Convertible Debentures (NCD) issuance.”

In November 2026 one-fourth of the amount will be repaid. In the next three years, the rest of the amount will be settled. Amid the NBFC crisis, large institutional investors preferred government-owned bonds, including Power Finance Corporation, the National Highways Authority of the country and Rural Electrification Corporation.

Investor apprehension reflected on the secondary market through much higher bond yields, with selected yields of lower-rated papers increasing between 42% and 93%. Bond yields and values move in the opposite direction.

Two weeks ago, mortgage lender PNB Housing Finance raised Rs 2,500 crore from LIC by secured non-convertible redeemable debentures, making it the second such issue of this fiscal year’s housing finance company.

In contrast, Housing Development Finance Corporation (HDFC) is the only private entity to maintain trust in large state-backed institutions.