Market volatility may Affect LIC IPO Valuation

The government may have to lower its valuation expectations in the initial public offer (IPO) of life Insurance Corp of India (LIC) that’s likely to be launched in about two weeks after reductions in the overall size of the offer, said people with knowledge of the matter. The recent fall in the stock price of private sector life insurers would weigh on India’s largest insurance company, they said. Bankers are planning to open the issue on May 4 and end it on May 9, said the people cited above. Despite the depressed valuation, LIC is still set to be the largest IPO in India comfortably, beating Paytm’s ₹18,300 crore last years, they added. LIC couldn’t immediately be reached for comment. “The final red herring prospectus will be finding anytime now and a market campaign for retail investors will happen next week,” said a person familiar with the plans “We are conscious of the challenges on valuations but we expect it to be made up by higher demand because of likely post-listing gains. That will help the issue sail through,” Over the weekend, the LIC board approved a cut in equity dilution in the offer to 3.5% from the 5% planned earlier Expectations are that the company is likely to be valued at ₹6 lakh crore. S-ET

Similar Posts

Leave a Reply

Your email address will not be published.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