New Delhi: The government plans to sell 5% of the shares in the initial public offering of state-managed life insurance companies in India, in what is designated as the largest sales in the country.
The government will sell around 31 crore shares in a fully owned insurance company, according to draft prospectus submitted with Sunday Market Regulator.
What LIC embedded value is called, key metrics for insurance companies that combine the value of future future profits with net value assets, pegged on rupees 5.4 trillion ($ 72 billion).
India wants to complete Mega-IPO at the end of the financial year in March to help bridge the gaping budget deficit.
Sales, said as the moment of Aramco India in connection with the giant list of bay oil of $ 29.4 billion, will test the depth of the Indian capital market.
It will also evaluate global appetite for what some people consider the country’s crown gem while others question the autonomy of an institution regularly pressed into services to save banks and public sector companies.
Lic is the name of the household in India.
With 2,000 branches, more than 100,000 employees and around 286 million policies, the company is headquartered Mumbai reaches practically every corner of the country.
The 65-year-old company has assets of almost $ 530 billion and 250 million policy holders and forms almost two-third of the market.
As many as 10% of the shares offered will be provided for policy holders, and another 5% for employees.
New shares will not be offered, the detail confirmation reported by Bloomberg before.
Bankers will now do a roadshow for Woo international investors.
While the prospectus does not provide targets, India needs to collect around 600 billion rupees ($ 8 billion) to meet budget estimates from asset sales.
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 profits rose to 14.4 billion rupees ($ 191 million) in six months to September, from 61.4 million rupees in the same period last year.
Watch LIC IPO: govt file draft papers with sebi