LIC Housing Finance asked not release result of voting on preferential issue in EGM; BSE, NSE seek clarity on LIC HFL's preferential allotment to LIC

LIC Housing Finance Limited has been denied permission to release the results of the voting on agenda at the upcoming Extra Ordinary General Meeting (EGM). The matter is related to preferential Issue of 4, 54, 00,000 equity shares to Life Insurance Corporation of India (LIC) at the upcoming EGM of the members of LIC Housing Finance Limited (The Company) on July 19, 2021.  

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"In the interest of investors in the securities market, the voting in the EGM may be carried on. However, the results of the voting on Agenda item no. 1 may not be made public and the same shall be kept in a sealed cover pending the completion of examination,” read the information shared on the exchanges.  

The exchanges—BSE and NSE — are investigating fulfilling of conditions related to Article of Association. However, the company has claimed that it has followed the Article of Association and Securities Exchange Board of India (SEBI) rules in the letter and spirit in the matter concerned. Earlier, Zee Business exclusive report had informed that exchanges are invetigating the matter.  

In the EGM on Monday, July 19, LIC Housing Finance Limited parent LIC has planned to generate Rs 2334 crore through preferential allotment.  

"The Company had again reiterated that, the price for the preferential allotment has been arrived at in compliance with the provisions of AOA, the Companies Act, 2013 and SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 as the Company being a Listed CIN No. company is not required to Obtain a Registered valuers Certificate as provided under Rule 13 of the Companies (Share Capital and Debentures) Rules, 2014. Further, the Company has, vide an email dated July 16, 2021 from BSE India Limited and National Stock Exchange of India Limited, received information the Said Preferential Allotment is under Examination by the Exchanges. It has further received a direction from the said Exchanges." LIC HFL said in a filing to exchanges on July 17.