The federal government will ship out invites within the coming weeks for the share sale of the nation’s largest insurer, stated the individuals, who requested to not be recognized because the discussions are personal. An providing may occur as quickly as March 2022, the individuals stated.
Prime Minister Narendra Modi’s authorities is eager to go forward with LIC’s IPO — doubtlessly India’s largest — to assist plug a widening funds hole. The administration plans to lift $24 billion by promoting belongings together with Air India Ltd. and Bharat Petroleum Corp. because it makes an attempt to revive an economic system battered by the coronavirus pandemic.
A list may worth LIC at as a lot as $261 billion, primarily based on its belongings below administration and utilizing personal sector insurers as a benchmark, analysts at Jefferies India led by Prakhar Sharma wrote in a February word. That might make it greater than , which is at the moment India’s largest listed firm with a market worth of about $199 billion.
LIC had whole belongings of 32 trillion rupees ($439 billion) within the monetary yr 2019-2020, in line with its newest annual report. The insurer had an virtually 69 per cent market share in life insurance coverage when it comes to whole first yr premiums.
Deliberations are ongoing and particulars of LIC’s itemizing plans may nonetheless change, the individuals stated. A consultant for the finance ministry declined to remark.