New Delhi is reducing its revenue-raising target through India’s Life Insurance Corporation IPO to 300 billion rupees ($ 3.9 billion), as it needs to lower its inflation rates after investors’ response, a source said. government.
Significant decline in IPO
The massive reduction of IPO aspirations – which would be the largest in India to date – puts it back under the administration of Prime Minister Narendra Modi, who has put sales as the first and foremost private initiative aimed at filling the state coffers. The state-owned insurance company, which is also India’s largest domestic investor, now has an estimated 6 trillion rupees, according to a source, who declined to disclose whether the IPO talks were secret.
Government plans to sell a little over 5%
Earlier, the government estimates required that insurance be estimated at 17 trillion rupees. “Investors have become increasingly aware of the risks over the past few months”Said a source.
He said the government planned to sell a little more than 5%. The source added that new regulatory approval for the listing process would be required but did not elaborate. Earlier, the government said it would sell 5% of the shares. The IPO could be launched in the first week of May, said investment banking sources.
The financiers did not respond
The Department of Finance did not immediately respond to an email requesting a comment. The government had been seeking to add LIC to the LIC list in the last financial year ended March 31 but had to delay sales after Russia’s invasion of Ukraine created a market.
The 66-year-old company owns the Indian insurance industry with more than 280 million policies. It was the fifth largest insurance in the world in terms of the 2020 insurance premium collection, the latest year in which statistics are available.
