LIC Housing Finance, the mortgage arm of Life Insurance Corporation of India (LIC), is set to foray into the venture capital arena. It intends to start Rs 500 crore real estate fund by the end of this financial year.
LIC Housing Finance is reportedly scouting for a banking partner for raising capital and will soon approach SEBI to set up an asset management company. To invest in listed companies, companies usually register with SEBI.
Based on the response to the real estate fund, the company will decide on whether it will expand its presence in the venture capital space.
There are at least three major banks in the fray for a tie-up and a memorandum of understanding will be signed soon. While LIC Housing Finance would be the promoter of the real estate venture fund, LIC could also be one of the internal contributors of the fund.
LIC Managing Director Thomas Mathew said the insurer has no plans to directly enter the private equity or venture capital businesses.
The fund proposed by LIC Housing Finance will be used to finance real estate development and about fifty-sixty projects are likely to be funded over twelve to eighteen months.
A large number banks and finance companies have recently entered the venture capital space and the existing players are expanding their footprints.
The Sebi’s recent decision to allow mutual fund firms to play in realty space has opened up a fresh avenue for individual investors. One month ago, Sebi had approved the inclusion of real estate and issued a set of guidelines. Prior to that, only high networth individuals were allowed to invest in realty directly. Read More »
By Rajani
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Posted in Property News
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Also tagged Angel Broking, Individual Investors, Industry Analysts, Ipo Market, Jai, Kpmg Report, Liquidity, Mfs, Minimum Investment, Mutual Fund, Mutual Fund Firms, Real Estate Sector, Strong Winds
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Godrej Properties Ltd, Real estate arm of the Godrej Group, declared that it has filed the Draft Red Herring Prospectus (DHRP) with SEBI for an IPO of approx seven million shares.
According to a company statement, the firm proposes an IPO of 9,429,750 equity shares of ten rupees each through 100% book building process to part finance this plan. ICICI Securities Ltd and Kotak Mahindra Capital Company Limited are the BRLMs for the Issue. Read More »
By Rajani
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Posted in Property News
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Also tagged , Commercial Projects, Equity Share Capital, Godrej Group, Godrej Properties, IPO, Kotak Mahindra, Mgf, projects, Promoter, Property
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Some things make the Reserve Bank of India (RBI) paranoid. The invasion of foreign money in the Indian property market has always been a familiar theme that rang alarm bells on Mint Street — the central bank’s headquarters.
Whenever it sensed an alarm, the regulator moved in to clamp down on such money flows. Even foreign venture capital funds opening shops here are asked by RBI to give an undertaking that the money they raise will not go into real estate. Read More »
By Rajani
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Posted in Property News
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Also tagged Alarm Bells, Asset Price, Bank Of India, Estate Assets, Foreign Money, Hybrid Instruments, Institutional Investor, Investment Rules, Mint Street, Mortgage Backed Securities, Mutual Fund Schemes, Nris, Price Bubbles, REMF, Reserve Bank Of India, Securities And Exchange Board Of India, Venture Capital Funds
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All the decks have been cleared for the launch of Real Estate Mutual Funds (REMFs) in India, with the Securities and Exchange Board of India (SEBI) notifying amended regulations for such products last week. For mutual fund investors, this may mean a welcome relief from the stream of new equity fund offerings, playing on every imaginable theme, that have clamored for attention over the past three years. But don’t hope for this to happen in near future. Read More »
SEBI has allowed mutual funds to launch real estate mutual fund (REMF) schemes, a move that will encourage investors to participate in and benefit from the real estate boom. Existing MFs can launch the REMF schemes, provided “…they have adequate number of experienced key personnel/directors,” Securities and Exchange Board of India (SEBI) said in a notification.
Market regulator Securities and Exchange Board of India (SEBI) said on 11th April it would issue rules on Real Estate Mutual Funds in the next fifteen days, allowing retail investor as well to access the realty market, which has viewed a boom in the last few years. “SEBI is ready with rules on real estate MFs that could be issued any day.T C Nair told the outer time limit to issue guidelines is fifteen days.
March 14, 2008 – 12:33 am
The SBI Mutual Fund filed the offer document with the Securities and Exchange Board of India (Sebi) for launching a dedicated scheme for the real estate and related sector, on 13th march .
The purpose of Magnum Sector Funds Umbrella (MSFU) Real Estate Equity Fund is to offer investors opportunities for long-term growth in capital through an active management of investments in equity and equity-related instruments (including derivatives) of companies in the realty and similar sectors and in debt and money market instruments, the offer document said.
The open-ended scheme would be available in Retail and Institutional Plan with growth and dividend options.
Under the dividend option, facility for reinvestment and payout of dividend is available, it said. Minimum investment under the retail plan is Rs 5,000 while under the institutional plan, it is Rs 5 crore. The performance of the scheme will be benchmarked against a composite benchmark created using BSE Realty Index to the extent of 60 per cent of the portfolio and BSE 100 for the remainder 40 per cent.
