LIC set for IPO
A public offering of shares by state-run Life Insurance Corp (LIC), set to be the country’s biggest ever at $8 billion, is expected to open for anchor investors on March 11, according to a media report.
The book will open for bidding by other investors a couple of days later. LIC’s initial public offering (IPO) is expected to obtain regulatory approval by the first week of March, after which an indicative marketing price band will be set, said the sources, declining to be named as the deal discussions are private.
LIC declined to comment. According to reports, the IPO launch schedule could change, though for now the issuer was working to meet those timelines.
LIC, the country’s largest insurance company, filed a draft IPO prospectus on Sunday with the market regulator to sell 5% of the Indian government’s stake to potentially raise nearly $8 billion. LIC could begin issuing public shares by mid-March. They did not elaborate.
Works going on
The government is rushing to complete the IPO by the end of March to meet its 2021/22 fiscal deficit target of 6.4% of gross domestic product (GDP), which is contingent on it raising around Rs 600 billion ($8.03 billion) from the issue.
New Delhi sharply trimmed its divestment and privatisation plans for the fiscal year that ends on March 31 to 780 billion rupees from 1.75 trillion.So far it has raised just 120 billion rupees from divesting stakes in state-run companies as it failed to privatise, including run refiner Bharat Petroleum Corp Ltd and two banks.
