LIC Housing Finance has decided to raise over Rs 2,334 crore from LIC as equity capital, the firm announced. As a result, the firm’s share price jumped 1.43 per cent during the early trading hours of the day.
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 per cent from over 40.31 per cent currently. The company will seek shareholders’ nod for the preference issue to LIC in its extraordinary general meeting next month on July 19.
The firm in June had reported a 5 per cent fall in its profit after tax to Rs 398.92 crore in the quarter ended on March 31, 2021, led by the higher provisioning for bad loans. It had reported a profit after tax of Rs 421.43 crore FY21
Its net profit grew by 14 per cent to Rs 2,734.34 crore as against Rs 2,401.84 crore in the year-ago period.
At 11.09 am, on Friday, the company’s scrip was trading at Rs 464.30, up by 1.43 per cent on the BSE.