LIC Housing Finance (LICHFL), the country's second-largest housing finance company, plans to raise additional capital of Rs 500 crore though QIP and preferential issue of equity shares.

The company informed that, the board of directors will meet on June 1 to consider the proposal to raise additional capital and to seek the shareholders' nod.

In addition LIC HF also quoted that its proposal to raise the capital before September 2009, will depend on shareholders' nod and market conditions.

The company intends to use the capital to support business growth for next two financial years.

The shares of the company closed at Rs 478 on BSE, up 7%, compared to previous close of Rs 447.