In a significant development in India’s NBFC space, a Delhi-based venture capital firm has increased its stake in LIC Housing Finance Ltd (LIC HFL), a leading housing finance company backed by India’s largest insurer, Life Insurance Corporation (LIC). The strategic stake hike signals growing investor confidence in the NBFC sector, especially in light of improving credit demand and stable interest rate expectations.
Who Raised the Stake?
Baswaria Capital Ventures LLP, a relatively lesser-known but aggressive Delhi-based investment entity, has raised its holding in LIC Housing Finance from 1.02% to 1.04% through open market purchases. While the hike seems modest in terms of absolute percentage, it highlights continued institutional appetite for undervalued but stable financial services stocks in the mid-cap NBFC universe.
About LIC Housing Finance
LIC Housing Finance, incorporated in 1989, is one of the country’s oldest and most trusted housing finance institutions. It offers a wide range of home loans, loans against property, and construction finance for individuals and corporates.
Key Financials (as of Q4 FY24):
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Loan Book: ₹2.81 lakh crore
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Net Profit: ₹1,265 crore
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Net Interest Margin (NIM): 2.67%
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Gross NPA: 4.15%
Despite pressure on margins, LIC HFL has maintained a stable asset quality profile supported by its parent LIC’s strong distribution reach.
Market Reaction & Stock Details
Following the stake hike report, LIC HFL stock saw marginal uptick on the NSE, closing at ₹527.40 on July 23, 2025, up 0.8% from the previous close. The stock has gained nearly 14% YTD, outperforming several peers in the NBFC housing space.
Shareholding Pattern Highlights:
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Promoter (LIC): 45.24%
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Public (Retail + Institutions): ~54%
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FII Holding: ~10.3%
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VC & PE Holdings: Rising interest
Expert Views
“LIC HFL has seen a valuation rerating as the market anticipates a real estate upcycle and RBI’s potential stance reversal in late 2025,”
— CA Manish Mishra.
“NBFCs like LIC HFL with strong legacy, low-cost funding, and semi-urban distribution strength are back in the spotlight,”
— CA Manoj Kumar Singh.
Why It Matters
Investor Sentiment Indicator: VC stake hikes in public NBFCs suggest increased confidence in the resilience of India’s housing credit market.
Sector Re-rating: With banking credit tightening, housing finance NBFCs could benefit from stable interest cycles and rising real estate demand.
LIC Synergy: The LIC brand continues to provide strong brand trust and funding support to LIC HFL, enhancing its long-term stability.
Conclusion
While Baswaria Capital Ventures’ stake hike in LIC Housing Finance may appear minor in numbers, it reflects a larger trend of renewed institutional interest in fundamentally strong NBFCs. As India’s formal credit demand grows and real estate momentum sustains, LIC HFL could emerge as a core holding in mid-cap portfolios for both retail and institutional investors.
