LIC Likely To Launch $8-Billion IPO On March 11, Says Report

LIC’s IPO is expected to obtain regulatory approval by the first week of March after which an indicative marketing price band will be set, sources said

The shares of LIC could be priced between Rs 2,000 and Rs 2,100 each. Image: Getty

New Delhi: Life Insurance Corporation (LIC), is all set to launch its initial public offering (IPO), which is touted to be the country’s biggest ever at $8 billion.

The public offering of shares by LIC is expected to open for anchor investors on March 11, according to a report by Reuters,

Quoting three sources with direct knowledge of the matter, the news agency said that the book will open for bidding by other investors a couple of days later.

LIC’s 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 identified as the deal discussions are private.

LIC, however, has declined to comment. A spokesperson from the finance ministry also did not respond to a Reuters request seeking comment.

According to a Bloomberg report, the shares of the state-run insurer could be priced between Rs 2,000 and Rs 2,100 each.

Roadshows have begun and pricing could change after assessing investor appetite and discussions with the government.

On February 13, the state-run insurer filed draft papers with capital market regulator Sebi for sale of 5 per cent stake by the government for an estimated Rs 63,000 crore.  Employees and policyholders of the insurance behemoth would get a discount over the floor price.

Some market analysts are expecting high dividends from the IPO. Some bankers have called the LIC IPO as India’s Aramco moment, referring to the Saudi oil major’s $29.4 billion public listing in 2019, to date the world’s largest IPO.

The government eyes Rs 63,000 crore from the IPO to meet its asset-sale target, based on calculations from the Union Budget estimates.