Middle East

LIC doubles after listing in March, despite stock price fluctuations

Bloomberg / Mumbai / New Delhi

India’s Life Insurance Corp has repeatedly planned to go public in March despite the volatile global market, demonstrating the urgency to wipe out government inflows.
“We are very enthusiastic about listing in March,” MR Kumar told reporters on Monday. “We are looking at the market,” he added.
The initial public offering by India’s largest state-owned insurance company is part of Prime Minister Narendra Modi’s efforts to eliminate funding shortfalls and curb budget deficits for the fiscal year ending March 31. For years, his administration has prepared LIC’s IPO program with assets of nearly $ 530 billion.
The IPO will test the depth of the country’s capital markets when the volatility of Indian equities reaches a high of almost nine months. Policy tightening by the US Federal Reserve has surprised foreign investors, heightened geopolitical tensions, and rising oil prices have further weakened sentiment.
According to Bloomberg News, the government aims to raise about 654 billion rupees ($ 8.7 billion) by selling a 5% stake in an insurance company, which will be sold in March if regulatory approval is in time. It will be held from the 10th to the 14th.
Kumar refused to comment on the rating. “The valuation process is underway. Pricing needs to be done. The valuation is decided by anchor investors and others,” she said.
LIC is taking logistical steps to attract the attention of individual investors. Of the 182 million policyholders, about 7 million have taxpayer numbers associated with their policies, which will allow them to subscribe for shares, Kumar said.
Huge insurance companies with unique blue and yellow logos are ubiquitous across the country with 1.4 billion people. With over 1.3 million agents, 100,000 employees, 2,000 branches and 1,500 satellite offices, LIC has more assets under management than the Indian investment trust industry combined.
The 65-year-old insurer accounts for nearly two-thirds of India’s market share.

http://www.gulf-times.com/story/710350/LIC-doubles-down-on-March-listing-despite-stock-sw LIC doubles after listing in March, despite stock price fluctuations

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