The shares of LIC Housing Finance gained as much as 1.94 per cent to Rs 480 on Wednesday. The mortgage lender has announced that it will acquire 19.3 per cent stake in LIC Nomura Mutual Fund Asset Management Company for Rs 27 crore.
The asset management business is co-owned by Life Insurance Corporation, LIC Housing Finance and Nomura Asset Management Company, a Japanese company. LIC Housing Finance has 20 per cent in the asset management business.
The average assets under management of LIC Nomura Mutual Fund for the July-September quarter was Rs 11,156 crore.
The mortgage lender will buy the stake from Nomura Asset Management Strategic Investment Private. Nomura currently owns a 35 per cent stake in the asset management company. It entered the joint-venture in 2011. After the deal, Nomura’s stake will go down to 15.7 per cent.
At 12.59 p.m., shares of LIC Housing Finance were trading at 479, up 1.88 per cent, outperforming the broader market index Sensex which was up 0.81 per cent.