LIC Board Approves Up to 10% Acquisition in NHB-Promoted Company

• 10 Jan 2024

On 8^th Jan, Life Insurance Corporation of India (LIC) announced that its board has granted approval for acquiring up to 10% stake in a company promoted by the National Housing Bank (NHB).

• The move, disclosed in a regulatory filing, involves investing in a new entity, backed by NHB, specializing in residential mortgage-backed securities.

Key Points

• Strategic Investment Approval: LIC's board has given the green light to invest in a new company, promoted by NHB, dedicated to residential mortgage-backed securities.
• Equity Contribution: The approval includes an equity contribution of up to 10% of the share capital in the said company.
• Tranche-wise Investment: The investment is slated to occur in one or more tranches, allowing flexibility in the acquisition process.
• Company Details Confidential: The regulatory filing did not disclose specific details about the NHB-promoted company targeted for investment.
• LIC's Housing Finance Arm: LIC already has a housing finance subsidiary, LIC Housing Finance Ltd, established in 1989. This subsidiary went public in 1994, and its stocks are currently listed on the National Stock Exchange (NSE) and Bombay Stock Exchange Limited (BSE).