LIC Housing Finance Proposes ₹10 Dividend, Seeks ₹55,000 Crore NCD Approval

LIC Housing Finance has proposed a final dividend of ₹10 per equity share and is seeking shareholder approval to issue Non-Convertible Debentures (NCDs) up to ₹55,000 crore.

Reader Takeaway: Investors to receive ₹10 dividend; company to raise funds via NCDs for growth.

What just happened

LIC Housing Finance announced its proposed final dividend of ₹10 per equity share for the financial year ending March 31, 2026. The company is also seeking authorization from shareholders to issue Redeemable Non-Convertible Debentures (NCDs) or other Tier II capital instruments on a private placement basis, up to an amount of ₹55,000 crore.

Why this matters

The proposed dividend offers a direct return to shareholders. The significant NCD issuance plan indicates the company's strategy to raise substantial capital for its operational liquidity and future expansion, reinforcing its growth trajectory. These actions are subject to shareholder approval at the upcoming Annual General Meeting (AGM).

The backstory

The company's existing overall borrowing limit stands at ₹4,00,000 crore. The proposed NCD issuance will fall within this existing limit, ensuring prudent capital management.

What changes now

Shareholders will vote on these proposals at the 37th AGM, scheduled for August 28, 2026. If approved, the company can proceed with the dividend payout and the NCD issuance. The record date for the dividend is set for Friday, August 21, 2026.

Concerns and Watch Points

Shareholders are reminded to claim unclaimed dividends for FY 2018-19 before September 30, 2026, to prevent their transfer to the Investor Education and Protection Fund (IEPF). For FY 2017-18, ₹0.09466 crore was transferred to IEPF. As of 2025, a cumulative 64,627 equity shares have been transferred to the IEPF.

Investors holding shares in physical form are advised to dematerialize their holdings and are alerted to a special window for re-lodgement of transfer requests.

Peer comparison

No direct peer comparison is provided in the filing.

Context metrics (time-bound)

• Proposed Dividend: ₹10 per equity share (FY 2025-26)
• Record Date for Dividend: August 21, 2026
• AGM Date: August 28, 2026
• Proposed NCD Issuance Limit: ₹55,000 crore
• Existing Borrowing Limit: ₹4,00,000 crore
• IEPF Transfer Deadline: September 30, 2026

What to track next

Investors should monitor the outcome of the AGM regarding the approval of the dividend and NCD issuance. It is also crucial for shareholders to ensure their details are updated for correct TDS deduction on dividends and to claim any outstanding dividend amounts before the stipulated deadline.