IPO awaited
LIC’s embedded value has been finalised at more than 5 trillion rupees ($66.82 billion), a govt official said. Investors are eagerly waiting for the release of its IPO draft prospectus, which is expected in a few days. The embedded value will help establish LIC’s market valuation and determine how much money the govt raises in the flotation
High expectations by government
That will be crucial to the government to help meet its divestment targets and keep its fiscal deficit in check. LIC has a majority share of the life insurance market in India. The government hopes to raise as much as $12 billion from selling a stake in the IPO. It expects the proceeds will help it bridge a deficit gap this fiscal year.
