Insurance giant LIC‘s $2.7 billion IPO, India’s largest, opens for subscription

div classBodysc17zpet90 cdBBJodivpBy Nupur Anandp

pMUMBAI Reuters – Stateowned Life Insurance Corp‘s LIC 2.7 billion IPO, India’s largest, opened to subscriptions from retail and other investors on Wednesday following strong demand from anchor investors led by domestic mutual funds. pdivdivdiv classBodysc17zpet90 cdBBJodiv

pThe Indian government expects to raise the sum, just a third of its original target, from selling a 3.5 stake in the countrys top insurance company, giving it an initial value of 78.52 billion. p

pThe subscription, set to close on May 9, will offer a discount to employees and retail investors of 45 rupees per share. LIC policyholders will be offered a discount of 60 rupees per share. p

pThe price range for the issue has been set between 902 rupees and 949 rupees per share.p

pAfter a reservation for employees and policyholders, the remaining shares will be allocated in a ratio of 50 to qualified institutional buyers, 35 to retail investors and 15 for noninstitutional investors.p

pThe final IPO price will be determined after the subscription closes. p

pThe 59.3 million shares set aside for anchor investors were subscribed at 949 rupees apiece. Norwegian wealth fund Norges Bank Investment Management and the Government of Singapore joined the anchor book, along with several domestic mutual funds.p

pThe government had initially wanted to list LIC in the financial year that ended March 31 but chose to delay the sale after Russia‘s invasion of Ukraine and the U.S. Federal Reserve’s interest rate tightening triggered a market rout.p

pThe 66yearold company dominates Indias insurance sector, with more than 280 million policies. It was the fifthbiggest global insurer in terms of insurance premium collection in 2020, the latest year for which statistics are available.