LIC IPO valuation at Dh400b
India’s government is seeking a valuation of between 8 trillion rupees (400 billion) to 10 trillion rupees for Life Insurance Corporation, in what’s slated to be the nation’s biggest initial public offering.
The possible valuation is based on preliminary talks and may change after detailed discussions, due diligence and an official valuation report, according to people with knowledge of the matter, who asked not to be identified. The government is considering selling 5 per cent -10 per cent of the company, which could raise between 400 billion rupees and 1 trillion rupees, the people said.
Plugging a gap
Prime Minister Narendra Modi’s government is pushing ahead with LIC’s IPO to help plug a widening budget gap as it aims to raise 1.75 trillion rupees by March through divestments.