In continued activity in the Indian insurance sector, the asset management company of state-owned Life Insurance Corporation of India Ltd, LIC Mutual Fund Asset Management Co Ltd, has agreed to sell a 35-per cent stake to Japan's Nomura Holdings Inc, according to unconfirmed reports.
The stake has been valued at Rs306 crore, or about 3 per cent of LIC Mutual Fund's assets under management. LIC Mutual Fund's other stake holders, LIC Housing Finance Ltd and GIC Housing Finance Ltd, have also diluted their holdings in the firm. (See: GIC Housing to offload stake in LIC-run companies)
While LIC Housing Finance has sold around 19.3-per cent of its stake for Rs137.5 crore, GIC Housing Finance, which held a 11.2-per cent stake, has exited the firm on Monday at a valuation of Rs89 crore. LIC Mutual Fund's average assets under management stood at Rs28,598 crore as of May.
Initially, Nomura will acquire 10 per cent in LIC Mutual Fund through fresh equity and would eventually raise its stake to 35 per cent. After the stake sale, LIC will hold 45 per cent and LIC Housing would have 20 per cent stake in the company.