te LIC Housing Finance announces preference allotment – check Anil Singhvi’s strategy, why analysts Bullish on the stock, Know target price here | Zee Business

LIC Housing Finance announces preference allotment – check Anil Singhvi’s strategy, why analysts Bullish on the stock, Know target price here

LIC Housing Finance on Thursday informed the stock exchanges that it has allotted over 4.5 crore preference shares to promoter LIC.

LIC Housing Finance announces preference allotment – check Anil Singhvi’s strategy, why analysts Bullish on the stock, Know target price here
LIC will be given 4.54 crore shares; at huge premium of Rs 514 per share: Zee Business

LIC Housing Finance on Thursday informed the stock exchanges that it has allotted over 4.5 crore preference shares to promoter LIC for over Rs 2,335.5 crore. The parent company LIC has subscribed the shares for Rs 23,35,51,22,000 at Rs 514.43 per piece, which is around 23 per cent higher premium as against today’s close of Rs 420 per share on the BSE.  This news was first broken by Zee Business. 

Zee Business Managing Editor Anil Singhvi termed it as a BIG BREAKING NEWS by the channel and listed out three reasons why it was massive news.

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The approval for preference allotment from the exchanges was, in itself, a big development. LIC will be given 4.54 crore shares; at huge premium of Rs 514 per share.

The Managing Editor said that the raw material for housing finance companies and non-banking finance companies is funds/money wherein they give this money on lease and earn interest on the same. 

Technical analyst, Kunal Saraogi says the chart of LIC Housing Finance suggests an immediate Buy recommendation. The analyst had advised to add this stock in portfolio two day and reiterates again to Buy after recent breakout due to this the preference allotment news.

Saraogi expected the stock to reach Rs 480-470 per share levels, with a support of Rs 400 per share as stop loss.

He said that this is the only HFC that hasn’t shown rally as compared to its peers, which has crossed their earlier highs. The stock is trying to catch up with its peers in the run-up, analyst adds.

Being bullish on HFCs, the analyst says the recovery story in realty would play out well in HFC segment too, moreover this sector is safer than NBFCs (non-banking finance company) amid asset quality issue in the sector.

Written By: Vaibhav Gautam Bansode
Edited By: Shivendra Kumar
Updated: Thu, Sep 09, 2021
06:14 pm
Mumbai, ZeeBiz WebDesk
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