Mumbai: The asset management company of state-owned Life Insurance Corp. of India Ltd (LIC), LIC Mutual Fund Asset Management Co. Ltd, has agreed to sell a 35% stake to Japan’s Nomura Holdings Inc.
The stake has been valued at Rs306 crore, or about 3% of LIC Mutual Fund’s assets under management, people familiar with the development said on condition of anonymity.
LIC Mutual Fund’s other stake holders, LIC Housing Finance Ltd and GIC Housing Finance Ltd, have also diluted their holdings in the firm, the people said.
While LIC Housing Finance has sold around 19.3% of its stake for Rs137.5 crore, GIC Housing Finance, which held a 11.2% 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% in LIC Mutual Fund through fresh equity and would eventually raise its stake to 35%, the people said.
After the stake sale, LIC will hold 45% and LIC Housing would have 20% stake in the company.