LIC India’s Biggest IPO at $8 billion Set to Launch 

A public offering of shares by India’s state-run Life Insurance Corp (LIC) is expected to open for anchor investors on March 11, according to three sources with direct knowledge of the matter.

The offering is expected to be India’s biggest IPO at $8 billion. Other investors will be able to bid on the book a few days later, as it has been revealed so far. 

LIC India’s Biggest IPO at $8 billion Set to Launch

The initial public offering (IPO) of LIC is scheduled to be approved by regulatory authorities by the first week of March, or around March 11. Following that, an indicative marketing price bracket will be established, according to the sources, who declined to be identified since the transaction negotiations are confidential.

LIC did not respond to a request for comment. 

Tuhin Kanta Pandey, Department of Investment and Public Asset Management (DIPAM) Secretary, commented, 

“I would say the embedded value could be more than 5 trillion rupees and the enterprise value will be multiples of that,”

The embedded value of the LIC has been set at more than 5 trillion rupees (USD 66.82 billion) The embedded value will be used to estimate the market value of LIC and how much money the government would raise through the IPO. 

This will be critical for the government to accomplish its divestment goals and keep the budget deficit under control. The market value of LIC is estimated to be roughly four times the embedded value.

Check out LIC India’s website to learn more!