LIC Housing is "preferred"

LIC Housing Finance is in the news today morning. The stock rose over 3.5% to hit an intraday high at Rs.475.45 on the back of 1.5 times surge in volumes. Its 10% UC for the day is at Rs.503.50.

The stock has gone up in news that the parent company, LIC will infuse Rs.2335 crore into the company by taking more stake.

LIC Housing Finance will issue shares at Rs 514.25 to its promoter LIC on a preferential basis pursuant to the decision made by the Board to issue preferential shares up to 4,54,00,000 through a private placement to LIC.

LIC's shareholding in the housing financier after the allotment of shares will go up to 45.24% from its current 40.31%.

The company has called for an EGM on 19^th July for approval to this preferential issue.