Life Insurance coverage Corp. (LIC), India’s largest insurer, may publish key particulars of its mammoth preliminary public providing (IPO) this month and start issuing public shares by mid-March, authorities and banking officers advised Reuters on Thursday.
LIC’s itemizing is about to be India’s greatest ever IPO, with the federal government aiming to lift as much as 900 billion rupees ($12.2 billion) from promoting a stake.
Officers are engaged on the valuation of the corporate which manages greater than $450 billion of belongings, and as soon as that’s performed they may challenge a draft IPO prospectus for traders, a authorities and two banking sources with direct data of the matter stated.
“We can be able to file the draft prospectus as quickly as the ultimate embedded worth is communicated and we’re working with a timeline of doing that by month finish,” one of many banking sources stated.
The embedded worth, a measure of future money flows in life insurance coverage corporations and the important thing monetary gauge for insurers, will decide the ultimate valuation of LIC.
The finance ministry and LIC didn’t instantly reply to e mail requests searching for touch upon the timelines. The embedded worth had been anticipated to return out in November.
LIC has a majority share of the life insurance coverage market in India and the federal government hopes proceeds from the IPO will assist bridge a deficit hole this fiscal 12 months. Itemizing will even carry extra transparency into the working of the state-run firm.
The insurance coverage large additionally has a subsidiary in Singapore and joint ventures in Bahrain, Kenya, Sri Lanka, Nepal, Saudi Arabia and Bangladesh.
“Highway reveals are anticipated to begin from subsequent month onwards and given the present state of affairs it’s anticipated to be all digital,” the supply added.
Final 12 months, the federal government appointed ten funding banks together with Goldman Sachs, Citigroup and SBI Capital Market to deal with the providing.
($1 = 73.8750 Indian rupees) (Reporting by Nupur Anand and Aftab Ahmed; modifying by Sanjeev Miglani and Mark Potter)
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