LIC eyes UTI stake in LIC Housing

As the Centre considers hiving off non-strategic equity holding of Unit Trust of India (UTI) to banks and institutions, the Life Insurance Corporation of India (LIC) is looking at increasing its stake in LIC Housing Finance Company Ltd (LICHFL).

LIC has 38.5 per cent equity holding in the housing finance arm and is not adverse to increasing to retain control, said senior executives at the financial institution. This follows recent spurt of interest by FIIs in picking up shares of LICHFL.

"Lot of FIIs have picked up shares of LICHFL including Templeton and Merill Lynch from the secondary market," said the housing finance arm's director and chief executive S C Jain.

The FII holding has increased by over 200 per cent in the last three months from 5.8 per cent as on September 30 to 17.48 per cent by December 2003.

Merill Lynch Capital Market Espana SA recently picked up 5.11 per cent and Templeton Mutual Fund Account Franklin picked up an additional two per cent odd, taking its total holding to 5.65 per cent.

In addition, HSBC Global Investment Fund (1.32 per cent), Citigroup Global Market Mauritius Pvt Ltd (1.04 per cent) and Abu Dhabi Investment Authority (3.94 per cent) have also invested in LICHFL.