A man cleans a Life Insurance Corporation of India (LIC) hoard before the start of a news conference on the launch of the LIC initial public offering (IPO) in Kolkata, India April 29, 2022. REUTERS/Rupak De Chowdhuri/File Photo
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MUMBAI, May 3 (Reuters) – The IPO of Life Insurance Corporation (LIC), India’s largest insurer, got off to a strong start. 59.3 million shares earmarked for anchor investors were subscribed at 949 rupees each, according to an exchange filing on Tuesday.
The Indian government has announced it will raise up to $2.74 billion, just a third of its original target, by selling a 3.5 percent stake in LIC in the country’s largest initial public offering (IPO). Continue reading
Anchor investors are high-profile institutional investors who are allotted shares before retail and other investor subscriptions begin and are required to commit to holding their shares for a specified period of time after the listing.
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LIC’s offering is scheduled to open to other investors on May 4th and close on May 9th. The indicative price range has been set at Rs902-949 per share, with Rs56 billion (US$732 million) of shares earmarked for anchor investors.
Norwegian wealth fund Norges Bank Investment Management and the Singapore government are among the subscribers to the anchor book, the filing showed.
Domestic mutual fund houses such as HDFC Investment Fund, SBI, ICICI and Kotak have also stepped in as anchor investors, along with other global funds.
According to two banking sources, over 20 investors had expressed interest in subscribing the anchor book.
Foreign institutional investors had some concerns about LIC’s IPO, but global pension funds had shown “good interest,” LIC’s chairman said last week. Continue reading
($1 = 76.5150 Indian rupees)
($1 = 76.4640 Indian Rupees)
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Reporting by Nupur Anand and Maria Ponnezhath; Edited by Sanjeev Miglani, Mark Potter and Anil D’Silva
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