LIC IPO Launch Date, Value, Stake for Sale in India’s Biggest Listing: QuickTake - Bloomberg
State-owned Life Insurance Corp. of India, with its distinctive blue and yellow logo, is ubiquitous across the country of 1.4 billion people. LIC controls nearly two-thirds of the Indian market, with almost 300 million policies and more than 1.3 million agents, 100,000 employees, 2,000 branches and 1,500 satellite offices. Prime Minister Narendra Modi’s administration is racing to sell at least 5% of LIC in what’s set to be India’s biggest-ever initial public offering and the fourth-biggest IPO of any insurer globally. Its sheer scale presents a unique challenge for the nation’s under-developed capital markets, and a big test of Modi’s plan to make the economy more efficient.
1. Why is the government selling a stake?
The LIC sale is the biggest chunk of a $10.4 billion asset-sale program that’s aimed at plugging India’s budget deficit for the year through March. The government plans to push borrowing to a record in the next fiscal year as it tries to spend its way out of the pandemic-induced downturn.
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