Leading housing finance firm LIC Housing Finance Ltd (LICHF) is all set to foray into the venture capital play with its proposed Rs 500-crore fund. LICHF plans to start fund-raising activities from September this year, reports Business Standard.
As part of the plan, LICHF has appointed Arun Goel as CEO for the proposed fund. Goel was previously the CEO of DHFL Venture Capital Pvt Ltd, the venture capital arm of Dewan Housing Financial. The report suggests that the firm was earlier looking for a domestic partner but later decided to go solo.
The company is currently working on building the investment team, and will start fund raising in the next few months. “We will first have a team in place, and then start our operation soon,” quoted RR Nair, MD and CEO, LICHF, in the report.
Life Insurance Corporation of India (LIC) will also contribute to the fund along with other investors. LIC has earlier invested in several such funds, including ICICI Venture. It has also committed funds to Renuka Ramnath’s Multiples Asset Management Fund, the report added.
LICHF is one of the largest housing finance companies in India, whith around 181 offices across the country. It also has representative offices at Dubai and Kuwait. In the last fiscal, the revenue of the company was Rs 3,470 crore, as compared with Rs 2,903 crore a year ago. Net profit during this period was Rs 662.18 crore, against Rs 531.62 crore. It has also raised fund through a qualified institutional placement (QIP) of shares in September last year.