New Delhi: The Indian government is considering allowing foreign institutional investors to buy up to 20% of the early public insurance public insurance general offer, government source said on Wednesday.
The LIC list is set up as the largest initial public offering in India, with the government aimed at increasing up to 900 billion rupees ($ 12.2 billion) from the sale of its shares.
At present, even though foreign institutional investors are permitted to accommodate up to 74% of private insurance companies and up to 20% of state-owned banks, they are not permitted to have shares in LIC.
Activating this will allow foreign pension funds, insurance companies and mutual funds to participate in the IPO of India’s largest living insurance company.
The government wants to complete this list of financial years to help with budget constraints and at the end of last month selecting 10 trader banks from sixteen who have an effort to start the process.
In total, trade banks will get around 100 million rupees ($ 1.36 million), higher than the cost of the token charged to several IPOs of state-owned companies in the past, but are still far lower than the cost of a private list.
For example, Zomato food delivery startup pays $ 31 million in fees for the first listing this year, according to Deogic.
However, a low cost, has not yet been a deterrent, with almost all major banks forbade Morgan Stanley to queue.
“We don’t care about what money has been offered.
This is the biggest IPO on several times and it might be the biggest, say for more than 5 years,” said a trader banker.