In a significant move within the Indian financial sector, ICICI Prudential Mutual Fund has bolstered its investment in LIC Housing Finance, pushing its total stake in the housing finance company past the 5% threshold. The asset manager disclosed this strategic acquisition through a regulatory filing made on Wednesday.
Details of the Share Acquisition
ICICI Prudential Mutual Fund purchased an additional 12,95,540 equity shares of LIC Housing Finance on December 2, 2025. This block of shares represented a 0.24% stake in the company. The transaction was executed through the secondary market.
Prior to this purchase, the fund house already held a substantial 2,74,11,303 shares, which equated to a 4.98% stake. Following the latest buy, ICICI Prudential Mutual Fund's total holding has risen to 2,87,06,843 shares, or 5.22% of LIC Housing Finance's paid-up capital.
The fund house clarified the intent behind this move in its filing, stating, "The holding by schemes of the Fund are from an investment perspective and not with the objective of seeking any controlling interest." This indicates a long-term investment view rather than an attempt to influence company management.
LIC Housing Finance's Shareholding Landscape
As of the end of September 2025, the promoter group, led by Life Insurance Corporation of India, held a dominant 45.24% stake in LIC Housing Finance. Public shareholders owned the remaining 54.76%.
A deeper look into the public shareholding reveals that mutual funds, as a group, are significant investors. A total of 41 mutual fund schemes collectively held an 18.24% stake in the company on September 30, 2025. Foreign Portfolio Investors (FPIs), meanwhile, held a comparatively smaller stake of 2.48%.
Stock Performance and Market Reaction
The news comes amid a mixed performance trajectory for LIC Housing Finance's stock. In the near term, the share price has faced pressure, declining by 5% over the past month and 9% in the last six months. On a yearly basis, the stock is down 14%.
However, the longer-term picture shows robust growth, with the stock delivering a 39% return over three years and an impressive 57% gain over the past five years. On the day of the filing, the stock was trading slightly lower, down 0.76% at ₹544.90 per share on the BSE in afternoon trade.
This strategic accumulation by one of India's leading mutual fund houses underscores continued institutional confidence in the housing finance sector's long-term prospects, despite recent market volatility.
