LIC HFL to Raise 2,334 crore Equity Capital from LIC
LIC is set to infuse equity capital worth close to 2,334.70 crore in its subsidiary LIC Housing Finance by gathering an additional stake in the company.
LIC Housing Finance (LIC HFL) would now issue shares at 514.25 a piece to its promoter Life Insurance Corporation of India (LIC) on a preferential basis.
Furthermore, the company’s board of directors in its meeting held last week had approved preferential shares up to 4,54,00,000 through a private placement to LIC.
In a regulatory filing, on June 24, LIC HFL said, "The issue price of the equity share of the face value of Rs 2 each shall be Rs 514.25 apiece, which is the price calculated as per Sebi regulations, 2018."
LIC's shareholding in the housing financier post the allotment of shares will go up to 45.24 percent from over 40.31 percent currently. The company will seek shareholders' nod for the preference issue to LIC in its extraordinary general meeting next month on July 19. The scrip of the company ended 1.51 per cent lower at Rs 457.75 apiece on BSE.