LIC will infuse equity capital worth about Rs 2,334.70 crore in its subsidiary LIC Housing Finance by picking up an additional stake in the company. LIC Housing Finance (LIC HFL) will issue shares at Rs 514.25 apiece to its promoter Life Insurance Corporation of India (LIC) on a preferential basis.
The board of directors of the company in its meeting last week had approved preferential shares up to 4,54,00,000 through a private placement to LIC. "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 HFL said in a regulatory filing on Thursday.
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 percent lower at Rs 457.75 apiece on BSE.