GIC Housing Finance gains after board approves buying 16% stake in LIC Nomura AMC

GIC Housing Finance rose 0.95% to Rs 235.05 at 10:18 IST on BSE after the company said it will acquire up to 16% stake in LIC Nomura Mutual Fund Asset Management Company for Rs 22.68 crore.

The announcement was made after market hours yesterday, 30 December 2015.

Meanwhile, the BSE Sensex was up 12.09 points, or 0.05%, to 25,972.12.

On BSE, so far 15,000 shares were traded in the counter, compared with an average volume of 38,076 shares in the past one quarter.

The stock hit a high of Rs 238.55 and a low of Rs 234.85 so far during the day. The stock hit a record high of Rs 287.25 on 19 January 2015. The stock hit a 52-week low of Rs 161 on 25 August 2015.

The stock had outperformed the market over the past one month till 30 December 2015, rising 7.48% compared with 0.71% decline in the Sensex. The scrip had also outperformed the market in past one quarter, rising 18.44% as against Sensex's 0.74% fall.

The small-cap company has an equity capital of Rs 53.85 crore. Face value per share is Rs 10.

GIC Housing Finance said that its board approved the proposal to acquire up to 16% in the paid up equity share capital of LIC Nomura Mutual Fund Asset Management Company for a consideration not exceeding Rs 22.68 crore, GIC Housing Finance said in a regulatory filing.

The board also approved buying up to 16% in the paid up equity share capital of LIC Nomura Mutual Fund Trustee Company for a consideration not exceeding Rs 1.26 lakh, it added.

GIC Housing Finance's net profit rose 15.3% to Rs 29.79 crore on 20.6% growth in total income to Rs 215.55 crore in Q2 September 2015 over Q2 September 2014.

GIC Housing Finance provides housing loans to both individuals and corporations.

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