India is planning to ask for proposals from funding banks this month for the preliminary public providing of Life Insurance coverage Corp. of India, in response to individuals accustomed to the matter.
The federal government will ship out invites within the coming weeks for the share sale of the nation’s largest insurer, stated the individuals, who requested to not be recognized because the discussions are non-public. An providing might occur as quickly as March 2022, the individuals stated.
Prime Minister Narendra Modi’s authorities is eager to go forward with LIC’s IPO — probably India’s largest — to assist plug a widening funds hole. The administration plans to boost $24 billion by promoting belongings together with Air India Ltd. and Bharat Petroleum Corp. because it makes an attempt to revive an economic system battered by the coronavirus pandemic.
An inventory might worth LIC at as a lot as $261 billion, primarily based on its belongings below administration and utilizing non-public sector insurers as a benchmark, analysts at Jefferies India led by Prakhar Sharma wrote in a February observe. That may make it greater than Reliance Industries Ltd., which is at the moment India’s largest listed firm with a market worth of about $199 billion.
LIC had complete belongings of 32 trillion rupees ($439 billion) within the monetary yr 2019-2020, in response to its newest annual report. The insurer had an nearly 69% market share in life insurance coverage by way of complete first yr premiums.
Deliberations are ongoing and particulars of LIC’s itemizing plans might nonetheless change, the individuals stated. A consultant for the finance ministry declined to remark.