Zee Business Exclusive: LIC Housing preferential issue to get exchanges green signal soon, sources say

In big breaking news, the preferential issue of LIC Housing Finance will soon get a green signal from exchanges, says Zee Business Assistant Editor Brajesh Kumar Mishra quoting sources while speaking to Managing Editor and Market Guru Anil Singhvi

Mishra says, post PNB Housing Finance preferential issue with Securities and Exchanges Board of India, the two issues of Barbeque Nation and LIC Housing were stuck. However, after consulting with exchanges and regulators the company had been told to come out with a valuation report, he adds.

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The assistant editor, in this regard, says, the company had appointed an independent valuer to make a fair value – valuation which was tabled at the company's board and got approved too. 

Further, both exchanges and a regulator had asked to get an opinion/approval of shareholders regarding this valuation report, says Mishra, adding further that apparently the price for preferential issue approved by shareholders in the EGM (Extraordinary General Meeting) and the valuation report price is the same as that is Rs 514.43 per share, which is likely to finalised for the preferential issue.

ZEE BUSINESS EXCLUSIVE

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Through preferential issue, LIC Housing to allot shares to the parent company LIC (Life Insurance Corporation of India). This is termed as high at least 30 per cent higher premium than the current market price of LIC Housing Finance.

The same had also happened with Barbeque Nation and very soon even they are going to launch their preferential issue, Zee Business had done an exclusive report last week on the same. 

The managing editor terming this as very big news, says there are three good things with LIC Housing preferential issue. He adds, first, the green signal soon for the issue; second, the company would get more money as for the companies like housing finance money is like a raw material and third, the fair value on which equity shares will be allotted Rs 514.43 per share is huge. 

The shares of LIC Housing ended 0.5 per cent higher to Rs 388 per share on the BSE, as compared to a 0.31 per cent rise in the S&P BSE Sensex on Friday.