The Life Insurance Corporation of India (LIC) has kickstarted wooing global investors via formal roadshows to participate in the country's largest public issue to date, according to a report by The Economic Times.
The investor roadshow held by the insurer, a day after filing of the draft red herring prospectus, saw participation from global companies like Capital Group, Aberdeen Asset Management, California University Endowment, Abu Dhabi Investment Authority (ADIA) and Singapore's GIC. Three Canadian pension funds, Standard Life, HSBC MF and Franklin Templeton reportedly also participated in the event.
"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. Considering the current market fall and less time available for the IPO we wasted no time to launch roadshows," a source told the publication.
Also Read — Why India's largest insurer LIC is being listed
The government is planning to raise up to $10 billion (about Rs 75,000 crore) through the LIC IPO, which will give a boost to the government's efforts to raise much-needed cash through privatisations, which are running badly behind schedule. The government will sell 5 per cent in the public issue and around 3,160 lakh shares will be on offer, according to the offer document filed with the market regulator.
LIC was created in 1956 and was synonymous with life insurance in post-independence India until private firms were allowed entry in 2000.
The company holds a two-thirds share in the domestic life insurance market. It manages assets of Rs 37 lakh crore ($491 billion), which equates to nearly 16 per cent of India's gross domestic product.
It has more than 1 lakh employees and 10 lakh insurance agents.
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