On Monday, the Life Insurance Corporation of India (LIC) announced that its board has given approval to acquire a stake of up to 10% in a company promoted by the National Housing Bank (NHB).
According to a regulatory filing, LIC’s board has sanctioned the proposal to invest in a newly established company, promoted by the NHB, specializing in residential mortgage-backed securities. The investment will be facilitated through an equity contribution of up to 10% of the share capital.
The investment will be carried out in one or more tranches, with specific details about the company remaining undisclosed at this time.
It is noteworthy that LIC already has a housing finance subsidiary, LIC Housing Finance Ltd, established in 1989. This subsidiary went public in 1994, and its stocks have been listed on the National Stock Exchange (NSE) and Bombay Stock Exchange Limited (BSE) since then.