Soon after Nomura’s announcement to sell 19% stake in LIC Nomura MF, GIC Housing Finance has decided to buy 16% stake in the AMC for Rs. 22.68 crore. The decision was taken at the board meeting of GIC Housing Finance held on Tuesday.
GIC Housing Finance is an NBFC promoted by General Insurance Corporation. The company is engaged in lending activities, particularly home loans. It was incorporated as GIC Grih Vitta Limited in 1989.
Industry observers believe that this stake will be sold by Japanese asset manager Nomura, marking its exit from the mutual fund joint venture with LIC.
Earlier this month, LIC Housing Finance announced that it will acquire 19.3% stake from its partner Nomura for Rs.27 crore. In 2009, Nomura had picked up 35% stake in LIC AMC for Rs. 308 crore, valuing the AMC at little less than 2.5% of Rs. 32,412 crore AUM as on June 2009. Going by the deal value, Nomura is exiting at a loss.
Currently, LIC Nomura AMC is jointly owned by LIC Housing Finance (20%), LIC of India (45%) and Nomura Asset Management (35%).
LIC Nomura MF manages assets of Rs.11, 157 crore as on September 2015.
