Sponsored by LIC Housing Finance Limited and co-sponsored by Life Insurance Corporation of India.
The Fund closed in March 2013 at INR 5.29 billion (INR 529.35 Cr.), above its targeted corpus of INR 5 billion (INR 500 Cr.).
LPs in LUDF include almost all major Indian Banks and Insurance Companies, as well as Corporates and High Networth Individuals (HNIs).
Affordable and mid-income housing projects in major Indian cities
LUDF’s investment cycle was completed across 9 portfolio companies and diversified across different geographies and asset classes including mid income housing projects, mid- income residential inventory and hospitals. The Investment structure in each portfolio company was customized to the specific requirement with an objective to cater to individual portfolio needs and mitigate investment risk.
Investment was made in affordable and mid income housing projects in major Indian cities, viz. Mumbai Metropolitan Region (MMR), Pune, Bangalore, Hyderabad and Chennai and operating health care delivery assets (Hospitals) in Punjab.
Active portfolio management strategy
LICHFL AMC actively manages its portfolio and has Board seats in all portfolio companies with rights to preferential surplus cashflow distribution, veto rights and access to ERP systems of the portfolio companies. Sales Revenue from housing projects is either held in escrow or joint accounts, managed by the Investment Manager and transfers are made to project operating accounts on back of performance review vis a vis business plan, supported by feedback from onsite project technical and internal auditors.
One of the leading housing finance companies in India
LIC Housing Finance Limited is the Sponsor and Promoter of the Fund, committed to invest in the Fund, 10% of the aggregate Capital Commitments. LIC of India is a co-sponsor.
LIC Housing Finance Ltd. is one of the leading housing finance companies in India. Its main objective is providing long term finance to individuals for purchase or construction of house or flat for residential purpose / repair and renovation of existing flat / houses. The Company also provides finance on existing property for business / personal needs and also gives loans to professionals for purchase / construction of Clinics / Nursing Homes / Diagnostic Centers / Office Space and also for purchase of equipment. The Company provides long term finance to persons engaged in the business of construction of houses or flats for residential purpose and to be sold by them.
It has one of the widest networks of 245 marketing ofices and 7 regional offices across India. In addition the company has appointed over 11,452 Intermediaries to extend its marketing reach. 21 Back Offices spread across India conduct the credit appraisal and administrative functions. The Company has set up a Representative Office in Dubai and Kuwait to cater to the Non-Resident Indians in the GLCC countries covering Bahrain, Dubai, Kuwait, Qatar and Saudi Arabia.
The Company has existing relationship with leading real estate developers across India and an outstanding mortgage portfolio of INR.1,445 Bn. (INR 1,44,534 Crore) as on 31st March 2017 (Fy 17), higher by 15% on YoY basis. Disbursements grew from INR 361.5 Bn. (INR 36,151 Crore) as on Fy 16 to INR 415.4 Bn. (INR 41,541 Crore) as on Fy 17. More than 2 million customers have been serviced by the Company since inception. Average retail loan ticket size stands at INR 2.2 Mn.
The company has shown impressive growth which resulted in exponential appreciation in its stock price. The Company has won several awards for best housing finance company, most respected company and for best data quality.