LIC Housing Finance, which is one of the leading housing finance company in the country, has said that it is aiming to raise raise Rs 1,150 crore through a QIP issue.

The housing finance company is aiming o complete the fund raising effort in the coming two months. The new issue will boost company's capital adequacy ratio with the new capital from investors being included in the company's balance sheet.

V K Sharma, chief executive of LIC housing Finance said, "We have already finalized the merchant bankers and depending upon market conditions we should be able to seal the issue in next one-two months."

The National Housing Bank (NHB), the regulator for the housing loans segment in India, has expressed optimism over the prospects of demand for home loans in the country. NHB chairman RV Verma hinted that the prices mght come down due to competition among banks as well as HFCs.

Experts say that the lenders in the country are increasing focusing on the retail segment for loans as the demand from the corporate sector has been slow. Most public sector banks are offering cheaper home loans in order to attract more buyers.