Explorer

Govt Expects To Open LIC IPO Issue By Mid-March: Report

LIC’s listing is set to be the country’s biggest ever IPO, with the government aiming to raise up to Rs 900 billion from selling a stake

New Delhi: India’s largest insurer Life Insurance Corporation (LIC) could publish key details of its mammoth initial public offering (IPO) this month and begin issuing public shares by mid-March, government and banking officials, according to a report by Reuters.

LIC’s listing is set to be the country’s biggest ever IPO, with the government aiming to raise up to Rs 900 billion ($12.2 billion) from selling a stake.

Officials are working on the valuation of the company which manages more than $450 billion of assets, and once that is done they will issue a draft IPO prospectus for investors, a government and two banking sources with direct knowledge of the matter said.

“We will be ready to file the draft prospectus as soon as the final embedded value is communicated and we are working with a timeline of doing that by month end," one of the banking sources said.

ALSO READ | WPI Inflation Eases To 13.56 Per Cent In December, Says Govt

The embedded value, a measure of future cash flows in life insurance companies and the key financial gauge for insurers, will determine the final valuation of LIC.

The finance ministry and LIC did not immediately respond to email requests seeking comment on the timelines. The embedded value had been expected to come out in November.

LIC has a majority share of the life insurance market in India and the government hopes proceeds from the IPO will help bridge a deficit gap this fiscal year. Listing will also bring more transparency into the working of the state-run company.

The insurance giant also has a subsidiary in Singapore and joint ventures in Bahrain, Kenya, Sri Lanka, Nepal, Saudi Arabia and Bangladesh.

"Road shows are expected to start from next month onwards and given the current scenario it is expected to be all virtual," the source added.

Aast year, the government appointed ten investment banks including Goldman Sachs, Citigroup and SBI Capital Market to handle the offering.

View More
Advertisement
Advertisement
25°C
New Delhi
Rain: 100mm
Humidity: 97%
Wind: WNW 47km/h
See Today's Weather
powered by
Accu Weather
Advertisement

Top Headlines

'One Nation, One Election' Bill Introduced In Lok Sabha With 269 Votes, 198 MPs Oppose
'One Nation, One Election' Bill Introduced In Lok Sabha With 269 Votes, 198 MPs Oppose
Priyanka Gandhi Has A New Bag For Parliament — This Time For Bangladesh
Priyanka Gandhi Ditches Palestine Bag, New Bag Is For 'Bangladesh Hindus And Christians'
Will NEET Be Conducted Online? Education Minister Dharmendra Pradhan Answers
Will NEET Be Conducted Online? Education Minister Dharmendra Pradhan Answers
Delhi Schools Get Another Bomb Threat, Fourth Instance In 2 Weeks
Delhi Schools Get Another Bomb Threat, Fourth Instance In 2 Weeks
Advertisement
ABP Premium

Videos

What Is Wrong With Legendary Cricketer Vinod Kambli's Health? | ABP LiveSambhal Temple: 46-Year-Old Temple Gets Official Name, Carbon Dating to Be ConductedDelhi Elections: Virendra Sachdeva Plays Ludo with Slum Kids | ABP NewsBreaking News: SP Stages Powerful Protest Ahead of UP Assembly Session

Photo Gallery

Embed widget