New Delhi: From adjusting capital-markets rules to sending phone messages and publishing newspaper advertisements, authorities and executives are leaving no stone unturned in trying to ensure Life Insurance Corp. of India’s record initial public offering is a success.
Prime Minister Narendra Modi’s government has the IPO — which could raise between ₹ 40,000 crore ($5.4 billion) and ₹ 1 lakh crore this quarter — as a key item in its economic agenda, with proceeds from the state-run insurer essential to reaching a budget-deficit target.
“The size of LIC is breathtaking,” said Abhay Agarwal, fund manager at Mumbai-based Piper Serica Advisors Pvt. While it might be easy for the government to make regulatory amendments needed for the IPO, “it will require significant marketing efforts to cross the ₹ 50,000 crore line,” he added.
Authorities are likely to review and amend new rules on the foreign-direct From adjusting capital-markets rules to sending phone messages and publishing newspaper advertisements, authorities and executives are leaving no stone unturned in trying to ensure Life Insurance Corp. of India’s record initial public offering is a success.
Prime Minister Narendra Modi’s government has the IPO — which could raise between ₹ 40,000 crore ($5.4 billion) and ₹ 1 lakh crore this quarter — as a key item in its economic agenda, with proceeds from the state-run insurer essential to reaching a budget-deficit target.
“The size of LIC is breathtaking,” said Abhay Agarwal, fund manager at Mumbai-based Piper Serica Advisors Pvt. While it might be easy for the government to make regulatory amendments needed for the IPO, “it will require significant marketing efforts to cross the ₹ 50,000 crore line,” he added.
Plan Beforehand
As it stages for the offering, Lic has been sending its policy holders messages and have started newspaper advertisements with the title “It’s best in life to be prepared.” The firm asked customers to update some of their personal details and the accounts that allow them to participate in the issue.
More than 110 companies sold shares for the first time in India last year to raise nearly $18 billion, a fourfold increase from 2020. While the average performance since debut has been positive, the country’s biggest-ever IPO last year was a flop. Digital-payments giant Paytm has tumbled more than 45% since its $2.4 billion listing in November, with analysts pointing to its expensive valuation.
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