LICHF unveils Rs. 500cr for urban infra fund

The subsidiary of Life Insurance Corporation of India (LIC), LIC Housing Finance Limited (LICHF) in a recent move has decided to set up Rs. 500cr urban infrastructure funds and with the latest move it has also marked its entry into the private equity sector. The proposed fund, which will be managed by LIC Housing Finance's asset management wing will invest in companies building affordable housing, industrial and IT Parks, Special Economic Zones and in other allied segments through equity and equity related instruments.

The company announced the initial closure of the fund of Rs. 200cr of which LIC of India and LICHF each invest Rs. 50cr and the remaining portion of the fund will flow from domestic institutional investors and high net worth individuals. The company has launched the latest fund in view of the increasing requirement for equity for successful financial closure of projects and has ventured into the private equity space with its maiden offering ensuring smooth fund flow to the urban infrastructure projects, Chief Executive of LICHFL in a statement said adding that the newly launched fund would make available the requisite funding for building world class urban infrastructure across cities in the country.