LIC Starts To Attract Global Investors Ahead Of Its IPO

Following the filing of draft papers with market regulator SEBI, LIC has started its roadshows to attract investors across the globe. The aim here is to get the attention of big-ticket investors seeking their participation in India’s leading public issue to date.

As per the officials of the Banking and Finances Ministry, the following fund houses has participated in Monday’s roadshow –

1. Aberdeen Asset Management

2. Abu Dhabi Investment Authority (ADIA)

3. Capital Group

4. California University Endowment

5. Government of Singapore Investment Corporation

Moreover, the following investors participated in this roadshow virtually, owing to the COVID-19 inflicted restrictions –

1. HSBC MF

2. Franklin Templeton

3. Standard Life

Besides these big global investors, some of India’s leading domestic institutional investors are also participating in this roadshow.

As per Government sources, they are in conversation with various domestic and international investors regarding their participation in this public issue. However, they do not want to make any public announcements till they are sure about their participation. Moreover, factoring in the current market scenario and the time constraints, they have started this process as soon as possible.

An Insight In To the LIC IPO

India’s largest insurer is going public as a part of the Indian Government’s disinvestment plan announced in the Union Budget of 2021. Under this liquidation, the Life Insurance Corporation of India is diluting 5%, which will be around 316 million shares.

This IPO will be an exclusive offer for sale, and LIC is not issuing any fresh issue equity shares. Moreover, about 60% of the QIB (qualified institutional buyers) section is set aside for anchor investors, and one-third of this section is for domestic investors.

As per the draft papers, the Indian Government is planning to raise about $10 billion or Rs. 75,000 crores through this public issue. Additionally, it will also help the Government to meet its disinvestment targets and fiscal digit.

Furthermore, book running lead managers of this public issue are –

1. Axis Bank

2. Bank of America Securities

3. Citi Group

4. Goldman Sachs

5. ICICI Securities

6. JM Financials

7. JP Morgan

8. Kotak Mahindra

9. Nomura

10. SBI Capital Markets

Bottom Line

The disinvestment of LIC is likely to set a new benchmark in India’s public market as this will be the highest ever IPO in this country. Nonetheless, if you plan to invest in this public issue, go through the financials and associated details of the company before making a move.

For more news on LIC’s IPO or any other upcoming public issues, stay subscribed to the Angel One Blogs.

Frequently Asked Questions

1. What is the price band of LIC’s IPO?

The exact price band of LIC’s IPO is not available yet.

2. What is the face value of LIC shares in this IPO?

The face value of LIC’s shares in this IPO will be Rs. 10 per equity share.

3. What is the embedded value of LIC as per the DRHP?

As per the draft red herring prospectus filed with market regulator SEBI, India’s leading insurance provider’s embedded value is Rs. 5,39,686 crores till September 2021.

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.