Life Insurance Corporation of India (LIC) has filed draft documents with the market regulator for the country’s largest initial public offering (IPO).
According to the draft prospectus dated February 13, India’s largest insurer will sell 316.25 million shares. The filing also reported an embedded value of 5.39 trillion Indian rupees ($71.56 billion).
The IPO is seen as a test of investors’ appetite for new offerings, with many companies that listed last year now trading below their offering prices on concerns over higher valuations and fighting inflationary pressures. Global central banks are raising interest rates.
The listing also comes against the backdrop of foreign investors pulling out money from the domestic market, just as the Narendra Modi-led government seeks to meet the target of rapid layoffs for the current fiscal.
The company said its investment in government securities and T-bills stood at Indian Rupees 61.44 billion as on September 30.
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