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Last Updated : Aug 22, 2019 09:52 AM IST | Source: Moneycontrol.com

Marquee investors plan stake sale in LIC Housing; shares tank 8%

As per CNBC-TV18, Fidelity Management is to sell stake in the company

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Shares of LIC Housing Finance plunged as much as 8 percent in early trade on August 22 after reports that some investors are likely to sell stake in the company.

As per CNBC-TV18, Fidelity Management is to sell stake in the company. Fidelity Investment Trust held 3.41 percent in the housing finance company as of June 30, 2019.

Bank of Muscat India Fund and Government Pension Fund Global held 2.28 percent and 1.83 percent, respectively.

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Reports said the transaction will happen in the price range Rs 425.15 – 449.50 per share, a discount of 3-8 percent to August 22 closing price.

Global brokerage Jefferies has maintained 'buy' recommendation on LIC Housing with a target price of Rs 578 per share.

As per the brokerage, the rise in asset quality stress is already priced in and developer mix at 7 percent is below most peers.

"With strong parentage and AAA rating, the company is better positioned among most peers. Potential fall In yields could lift incremental spreads which is a key margin and valuation driver," said the brokerage.

It sees loan book CAGR of 14.5 percent over FY19-22.

Around 0930 hours, shares of LIC Housing Finance traded at Rs 429.60 apiece, down Rs 34.10, or 7.35 percent.

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First Published on Aug 22, 2019 09:52 am
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