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.