LIC Housing Finance to raise up to Rs 47,000 crore

Today LIC Housing Finance declared, it will raise up to Rs 43,000 crore through non-convertible debentures on private placement basis. The amount will be raised in one or more series, during a period of one year beginning from the date of this meeting. 

The company said in BSE filing "To issue redeemable Non-Convertible Debentures (NCDs) secured or unsecured, any other hybrid instruments which can be classified as being Tier II capital up to an aggregate amount not exceeding Rs 43,000 crore. Raising fund through loans/NCDs/bonds/similar such instrument, including securitisation, to take property on lease/rent, avail/render any services or any other transaction which construe to be related party transactions with the related party/parties up to Rs 4,000 crore," 

Similarly, the board approved entering into a related party transaction to raise an additional Rs 4,000 crore.

Also recently LIC Housing Finance has posted outstanding Q1FY15 result, Total income of  LIC Housing Finance increased by 17.4 per cent to Rs 2,946 crore from Rs 2,509 crore during the same period. Net profit jumped by 18.5 per cent to Rs 382 crore, and NII was up by 30 per cent on yearly basis.

Today after this announcement, LIC Housing Finance shares are up by 4 per cent and trading at Rs 434 a share.