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UTI, IFCI may exit LIC Housing Finance
July 21, 2003 13:46 IST
Unit Trust of India and Industrial Finance Corporation of India, which together hold around 23 per cent stake in LIC Housing Finance, are likely to exit from the company even as LICHFL is exploring possibility of a public offer.
LIC holds 38.5 per cet stake in the housing finance arm, while UTI and IFCI have 11.49 per cent and 11.45 per cent stake and public and others hold 38.56 per cent stake.
When contacted, LICHFL officials said they had not yet been approached by either UTI or IFCI.
"If they (UTI and IFCI) want to exit, they can do so as it is their prerogative being the shareholders," they told PTI.
This move comes with bifurcation of UTI after being hit by financial scams, and IFCI, with its mounting non-performing assets, going ahead with financial restructuring to, which public sector banks and financial institutions as well as the Employees Provident Fund Organisation have agreed to.Asked whether they foresee a public offer, LICHFL sources did not rule out such a possibility. The company had a comfortable capital adequacy ratio of over 17 per cent as compared to National Housing Bank's norms of 12 per cent.
"We have comfortable CAR and debt-equity ratio which put us in advantageous position in case we go for a public offer," they said.