Embedded value of LIC likely at $150 billion as IPO plan kicks off

An actuarial valuation exercise has arrived at a $150 billion embedded value for Life Insurance Corp. of India, the first such valuation done by India’s largest insurer, which is set to start road shows for its initial share sale next month, two people aware of the development said.

India’s largest insurer has also initiated talks with several foreign investor, including pension funds, to join as anchor investors in its initial public offering, the people said,requesting anonymity.

Anchor investors are typically financial institutions that are allotted shares in a company ahead of the public offering on a discretionary basis. Long term investors bring more stability to a company’s stocks as they react less often to external shocks and avid churning their investments. If such investors become key shareholders, LIC shares could see less vitality and shareholders, LIC shares could see lessvotality.

Leave a Reply

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

WordPress.com Logo

You are commenting using your WordPress.com 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