LIC Housing Finance

EPW Research Foundation LIC Housing Finance PROMOTED by Life Insurance Corporation of India with equity participation from premier financial and investment institutions hkethe UTUFCl and the ICICI, LIC Housing Finance (LICHF) is entering the capital market on-September 15 with 1,89,18,000 equity sharps of Rs 10 each at a premium of Rs 50 each aggregating Rs 11,350.8 lakh. Subsequent to the issue, LIC will hold 38.46 per cent of the company's equity and 36.3 per cent will be held by UTI. ICICI and IFCI The LIC Housing Finance has a wide network of offices throughout the country making it easy for the consumers to avail of the benefits of its various housing finance schemes. Within a short period of its existence, the company has disbursed cumulatively housing loans to the extent of Rs 1,348.60 crore by March this year. The company has stupendous scope for expansion considering the fact that the demand-supply gap in the housing sector is increasing rapidly and the projected shortage in the year 2001 will be 41 million units, a rise of 94 per cent over the figure in 1991. Other than inevitable external risks like change in policies, which would affect the financial sector as a whole, the internal risks are minimised as the company has long experience in the business. The issue is lead managed by ICICI Securities and Finance Company, DSPFinancial Consultants and SBI Capital Markets.