LIC Housing Finance Ltd (LIC HFL) shares rose nearly four percent on Friday after the company announced that its promoter Life Insurance Corporation of India (LIC) will infuse about Rs 2,334.70 crore by picking up an additional stake in the company.
The stock rose as much as 3.8 percent to its day's high of Rs 475.45 per share on the BSE.
With an additional 4.93 percent stake, 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 board of directors of the company in its meeting last week approved preferential shares up to 4,54,00,000 through a private placement to LIC. LIC HFL will issue shares at Rs 514.25 apiece to the promoter on a preferential basis.
"The issue price of the equity share of the face value of Rs two 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.
The company will seek shareholders' nod for the preference issue to LIC in its general meeting next month on July 19.
(With inputs from PTI)