Government seeks $109- bn valuation for LIC

The Government is seeking a valuation of between Rs 8 Lakh crore ($109 billion) and Rs 10 lakh crore for state- backed Life Insurance in what’s slated to be nation’s biggest initial public offering.

The government is considering selling a 5%- 10% stake in the company, which could raise between Rs 40,000 crore and Rs 1 Lakh crore according to people with knowledge of the matter who asked not be identified as the matter is private.

The potential valuation is based on preliminary talks and may change after further discussions, due diligence and an official valuation report.  The government is pushing ahead with LIC’s IPO to help plug a widening budget gap as it aims to raise Rs 1.75 lakh crore by March through divestments.

The LIC sale is key to the government achieving this target. The centre may also allow foreign direct investment in the insurer to ensure diversified and strong demand across investors.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this:
search previous next tag category expand menu location phone mail time cart zoom edit close