Sugal and Damani Finlease

EPW Research Foundation GIC Housing Finance GIC HOUSING FINANCE, promoted by the General Insurance Corporation of India. is entering the capital market for the first time on December 19 with an issue of 80 lakh equity shares of Rs 10 each at a premium of Rs 40 per share for Rs 40 crore. The promoters will be allotted 26,00,400 shares. Out of the balance of 53,99,600 shares, 8,90,900 shares have been reserved on a firm allotment basis for mutual funds and 8,600 shares are reserved for employees. The offer to the public is of 45,00,100 shares. The company provides housing loans to individuals up to Rs 10 lakh under its Apar Ghar Yojana and loans to NRIs up to Rs 10 lakh under its NRI Housing Loans. It has also been giving loans for house repair and renovation and financing builders. The profitability of a housing company depends largely on its cost of debt. The average cost of debt of the company was 12.20 per cent as on March 31, 1994. This compares favourably with the average cost for the industry as a whole. With the market for housing finance loans growing, the company expects to perform well.