Tag: life insurance corporation

Most large global investors that the Central govt had interacted with for Life Insurance Corporation of India’s (LIC’s) initial public offering (IPO) may give the issue a miss. But in their interactions with the Centre, they have committed to consider investing in the insurer’s future offerings, based on its performance as a listed entity. The Centre had reached out to 180-200 large investors that included sovereign wealth funds, investors who focus on only large IPOs globally, and those who make investment decisions based on environmental, social, and governance (ESG) track records. Even as the board of LIC has approved a reduction in the size of LIC’s IPO to 3.5 per cent or Rs 21,000 crore, the Centre is still in talks and gauging the response from some of these foreign investors to increase the size to 5 per cent, if they choose to participate in the offering. Read more

The size of the LIC's initial public offering (IPO) may be slashed to Rs 21,000 crore, according to some sources. The IPO, however, may come with a greenshoe option of Rs 9,000 crore. The total IPO size, after accounting for the greenshoe option, will work out to Rs 30,000 crore and will lead to a 5 percent dilution of the government stake. The government currently holds a 100 percent stake in LIC. The IPO is now expected to hit the market on May 2, sources said. The insurance giant’s valuation may be reduced to just Rs 6 trillion, which will be 1.1 times its embedded value of Rs 5.4 trillion, they added. Read more