India is considering selling around 5% of the shares accommodated in a state insurance company because it is preparing documents for the largest initial public offering in the country, according to people who are familiar with this problem.
The government plans to offer 316 million shares from 6.32 billion shares in Indian life insurance, and no new shares will be issued, said people, asking not to be identified to discuss confidential information.
The prospectus draft is expected to be submitted this week, they said.
The company’s embedded value is estimated at around $ 72 billion, although officials still tighten the numbers, people said.
Insurance Board is likely to meet Friday to ratify the decision, one of the people’s words.
Considerations are still ongoing and details can change, said people.
Representatives for the company, known as LIC, did not immediately respond to a request for comments.
Ministry of Finance spokesman in New Delhi is not available to comment.
The first stock sales by insurance companies are part of the efforts of Prime Minister Narendra Modi to clean cash and help control the budget deficit that widens in the middle of a pandemic.
For almost two years, his government has prepared an IPO plan for LIC, which has an asset of almost $ 500 billion.
The sharp reduction in the government’s asset sales target for the financial year ended on March 31 has sparked speculation that the state will look for less than anticipated from the IPO LIC.
It’s planned to collect around $ 5 billion to $ 13 billion, people who are familiar with this problem have said before.
Offer prices will be determined through the book making process.
Paytm Digital Payment Operators currently hold a record for the largest IPO in the country after raising $ 2.5 billion in the November list.
Lic appointed six new independent directors to his council, PTI reported on February 6.