Mumbai: Life Insurance Corporation of India is looking to raise about Rs 654 billion ($8.7 billion) from its initial public offering, according to people with knowledge of the matter.
Shares of the state-run insurer could be priced between Rs 2,000 to Rs 2,100 each, with discounts to some retail investors, the people said, asking not to be identified as the deliberations are private. The issue is slated to run March 10-14 if regulatory approvals are obtained in time, they added.
Roadshows have begun and pricing could change after assessing investor appetite and discussions with the government, which owns LIC, the people said.
Prime Minister Narendra Modi’s administration needs about Rs 630 billion by the end of March to meet its asset-sale target, based on calculations from budget estimates. India is pushing ahead with the nation’s largest IPO, a mammoth task made even tougher by inflationary concerns and a challenging global market for investors.
LIC is aiming to allot Rs 169.4 billion of shares to anchor investors on March 9, the people said.
A representative for LIC didn’t immediately reply to an email seeking comment. – Bloomberg
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