LIC Housing to raise Rs 300-400 cr capital, net up 38 pc

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Mumbai, Jan 16 (UNI) LIC Housing Finance, promoted by India's biggest insurer Life Insurance Corporation of India, today said it will raise capital of around Rs 300 to Rs 400 crore through preferential issues by the end of this fiscal.

Speaking at the announcement of their quarterly results here today, LIC Housing Director and Chief Executive S K Mitter said, ''we are in the process of finalising the plan and will soon apply to the India market regulator SEBI for approval.'' The issue is expected to hit the capital market before the end of FY08 and will not dilute the 40.49 per cent stake of company's promoters. ''It will be under fresh capital raising process,'' Mr Mitter asserted.

LIC Housing is also in the final stage of introducing its new product under reverse mortgage loaning segment. Mr Mitter said in this regard that their are few points in the project, which need to be discussed with India's housing finance regulator National Housing Bank (NHB) and Cental Board of Direct Taxes (CBDT). ''We are holding talks with these two bodies and as soon as things get finalised we will introduce the product,'' Mr Mitter said.

The company has posted a net profit increase of 38 per cent to Rs 106.02 crore for the quarter ended December 31, 2007, as compared to Rs 76.61 crore in the corresponding quarter of the previous fiscal. The earnings per share (EPS) for the quarter climbed 38.36 per cent to Rs 12.48 compared with Rs 9.02 in the previous year.

The loan disbursals by the company grew by 49 per cent to Rs 1652 during the same quarter from Rs 1108 crore in the corresponding quarter last fiscal.

The company is optimistic in maintaining a growth pattern around 25 to 30 per cent year-on-year basis in the next quarter, Mr Mitter added.

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