LIC Housing Finance share price surges as LIC to infuse additional equity capital

1 min read . Updated: 25 Jun 2021, 02:29 PM IST Livemint

LIC's shareholding in the housing financier post the allotment of shares will go up to 45.24% from over 40.31% currently

Shares of LIC Housing Finance surged over 2% at ₹469 per share on Friday on the BSE on the company's plans to raise over ₹2,334 crore from Life Insurance Corporation of India (LIC).

LIC will infuse equity capital worth about ₹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 ₹514.25 apiece to its promoter Life Insurance Corporation of India (LIC) on a preferential basis.

"The issue price of the equity share of the face value of ₹2 each shall be ₹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% from over 40.31% currently.

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 company will seek shareholders' nod for the preference issue to LIC in its extraordinary general meeting next month on July 19.

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