LIC IPO gets strong demand from anchor investors: Report – Times of India

MUMBAI: The IPO of India’s largest insurer, Life Insurance coverage Company (LIC), has obtained off to an excellent begin, with the $732 million of shares reserved for so-called anchor traders oversubscribed on the higher finish of the worth vary, a banking supply stated.
The federal government has stated it expects to boost as much as $2.74 billion, only a third of its unique goal, from promoting a 3.5% stake in LIC within the nation’s largest preliminary public providing (IPO).
Anchor traders are high-profile institutional traders which can be allotted shares earlier than the subscription opens for retail and different traders, and need to decide to holding their shares for a sure interval after itemizing.
LIC’s providing is about to open for different traders on Might 4 and can shut on Might 9. The indicative value vary has been set at 902 to 949 rupees per share, with $732 million of shares put aside for anchor traders.
Norwegian wealth fund Norges Financial institution Funding Administration and Singapore sovereign wealth fund GIC have subscribed to the anchor guide, the supply stated.
Alongside different international funds, home mutual fund homes akin to HDFC mutual fund, SBI, ICICI and Kotak have additionally are available as anchor traders, the supply added.
Abu Dhabi Funding Authority and Qatar funding authority had beforehand been in talks to be anchor traders, but it surely wasn’t instantly clear in the event that they made bids.
The finance ministry didn’t instantly reply to an e mail looking for remark.
Over 20 traders had expressed curiosity in subscribing to the anchor guide, two different banking sources stated.
International institutional traders had some issues about LIC’s IPO, however international pension funds had proven “good curiosity,” LIC’s chairman stated final week.

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