Mumbai: The initial public offering (IPO) for Behemoth Lic life insurance, where the government plans to mobilize around Rs 1 Lakh Crore, can be divided into two consecutive offering with a gap of several months may be believed that the market may not have the capacity to absorb the whole problem Mammoth size like that in one go.
If this plan follows it, this will be the first of his steps.
The current rules say that promoters cannot withdraw their shares up to below 20% within 18 months of the IPO.
It also stipulates that the promoter of a large company with RS 1 Lakh Crore market capitalization can take up to two years to withdraw up to 10%.
Among the options discussed for LIC are foundation investors, tent asset managers who can place large funds ahead of the IPO, which is expected to be the biggest in the country’s history.
Usually, government-owned companies do not choose all types of shares with investors before bidding, which includes the sale of foundation investors, the placement of pre-IPO to large institutions or selling parts of the IPO to an investor anchor the day before the problem is open.
The source said that officials involved in the IPO process believed that with so many offers were closed and several others in the pipeline to LIC offerings came to the market, a large number of investor funds would be absorbed.
So far in 2021, more than 25 IPOs have collected nearly Rs 70,000 Crore.
PayTM, the money transfer entity activated technology, also submitted for IPO to clean around RS 16,600 Crore.
This will make Paytm IPO the biggest Indian offerings.
At present, the IPO RS 15,475 CRORE Batubara India in 2010 was the largest.
“All options are on the table (to make LICs offer success),” an official is close to the transaction to the Toi, without describing the option.
International institutions, including sovereign assessment funds and private equity funds, are seen as potential investors.
Some potential investors have reached to get an overview of embedded values ​​(EV) and Multiple EV which is searched for by the government in pricing.
In 2021, the IPO RS 9,375-Crore for food delivery services that supported the major technology Zomato had become the biggest.
This problem subscribes to more than 38 times.
However, the offer of RS 5,000 Crore for Nuvoco Vista Cordr, the cement maker run by the founders of Nirma detergent, who also happened to be the second largest IPO in 2021, struggling.
It was closed on August 11 with a problem that subscribed to only 1.7 times.
Later, to help Lic sailing offers through SBI smoothly changed several rules for the IPO.
For example, as in February said that if a company can obtain post-IPO market capitalization from Crore Rs 1 Lakh, it can reach 10% of public share ownership in two years and 25% in five years.
Until then any company with post-IPO market value of 4,000 crore must offer 10% equity in the offer and reach 25% of the public in three years.
The rule is perfect in synchronizing with the statement of the Minister of Finance that the government will accommodate at least 75% in LIS to five years posting its IPO which will eventually fall to 51%.