New Delhi, Apr 27 (EFE).- India’s state-owned insurance firm Life Insurance Corporation (LIC) announced Wednesday its listing on the stock exchange next week, which is expected to become the largest IPO in the country’s history with a valuation of around $2.75 billion.
LIC will offer its shares to the general public between May 4-9, while they will be available to anchor investors from May 2, in the price band of Rs 902-949 ($11.7-$12.4). the insurance company announced at a press conference.
Although it was estimated that LIC’s offer of issuance would initially be higher, worth about $4 billion or 5 percent stake of the company, the board finally announced that the Indian government would only sell 3.5 percent worth about $2.75 billion.
Nevertheless, LIC is still set to have India’s largest ever IPO next week, surpassing the nearly $2.4 billion IPO of digital financial services and e-commerce company Paytm in 2021.
LIC’s announcement also reveals other details about the insurance company, such as its estimated value of $600 billion, which, according to its directors, makes it the second largest company in the country, and far ahead of its competitors in the sector.
During the announcement, LIC Chairman MR Kumar underlined that this historic step would open a new horizons for the company, the first to offer life insurance to citizens in India.
Tuhin Kanta Pandey, secretary of the Department of Investment and Public Asset Management – responsible for reviewing investment and divestment – underlined the government’s “long-term” commitment to move this process forward with LIC.
He stressed that the offering was just adequate, given the limitations of the market, and the move would not displace the supply of capital and money in the market.
Moreover, he said the IPO comes at an ideal time due to existing demand in the Indian market, stable market conditions, and reduced volatility, among other reasons. EFE