LIC Seeks Participation Of Global Investors Including ADIA, Capital Group And Canadian Pension Funds In Its IPO: Report

The Life Insurance Corporation (LIC) has started formal roadshows with big-ticket global investors, seeking their participation in the country's largest public issue to date.

The LIC on Sunday (13 February) filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its mega initial public offering (IPO).

As per the DRHP, up to 31,62,49,885 (31.62 crore) equity shares will be on offer through the offer for sale (OFS), representing 5 per cent of equity stake. There will be no fresh issue of shares.

The LIC IPO is likely to hit the market in March after SEBI approval.

LIC's embedded value stood at Rs 5,39,686 crore as of 30 September 2021.

Capital Group, Aberdeen Asset Management, California University Endowment, Abu Dhabi Investment Authority (ADIA) and Singapore's GIC are among the funds that participated in Monday's investor roadshows, bankers and finance ministry officials were quoted in a report by ET as saying.

Further, three Canadian pension funds, Standard Life, HSBC MF and Franklin Templeton as wells as top domestic institutional investors also participated in the roadshows.

The roadshows are being held virtually due to COVID-19 related restrictions.

"We have launched roadshows formally now, although informal conversations have been happening for some time. Being the biggest high-profile share sale, we need to be 100 per cent sure about the participation," a source was quoted in the ET report a saying.

According to the report, the government aims to raise up to $10 billion (about Rs 75,000 crore) through the LIC IPO, which will be India's largest public issue to date.