GOVT Moll’s Reducing LIC IPO SIZE AMID Volatile mkt                                      

The government may opt for a smallest initial public offer(IPO) For life insurance corp. of India (LIC) than earlier planned. Concerned about the investor response given market volatility and portfolio outflows, said people with knowledge of the matter. There is no plant to delay the offer though as it sees strong domestic appetite for the country’s biggest life insurance company. It could seek special exemption from the market regulator for a sale of less than the 5% stake proposed in the draft offer document and required under the rules, they said.” We will take a balanced call. There are headwinds… but the thinking emerging is that the offer should be launched with a less ambitious raising,” a senior government official told ET.” The idea behind LIC IPO has been to make people partners in the company and not a fiscal exercise. A final offer document is likely to be filed next week after consultations with all stake holders. Roadshows for the offer are currently going on. If the merchant bankers suggest a smaller offer, the government will approach the securities and exchange Board of India (Sebi) for reducing the IPO size. S-ET

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *