New Delhi: The Indian government is considering allowing foreign institutional investors to buy up to 20% of state-owned life insurance corporationA government source gave this information on Wednesday.
listing of LIC This will be India’s biggest ever initial public offering, in which the government is aiming to raise Rs 900 billion ($12.2 billion) from its stake sale.
At present, even though foreign institutional investors are allowed to hold up to 74 per cent in private insurance companies and 20 per cent in state-owned banks, they are not allowed to hold shares in LIC.
Enabling this will enable foreign pension funds, insurance companies and mutual funds to participate in the IPOs of India’s largest life insurer.
The government is keen to complete the listing this financial year to help with budgetary constraints and late last month selected 10 merchant banks out of sixteen that had bid to start the process.
Overall, merchant banks will earn a fee of about 100 million rupees ($1.36 million), higher than the token fee charged on some IPOs of state-owned firms in the past, but still much less than the fee for private listings. Is.
For example, food delivery startup Zomato paid $31 million in fees for listing earlier this year, according to Dealogic.
However, as with almost all major banks except Morgan Stanley, low fees have not been a deterrent.
One merchant banker said, “We couldn’t care less about the money being given out. This is the biggest IPO in recent times and will probably be the biggest in the next 5 years.”
listing of LIC This will be India’s biggest ever initial public offering, in which the government is aiming to raise Rs 900 billion ($12.2 billion) from its stake sale.
At present, even though foreign institutional investors are allowed to hold up to 74 per cent in private insurance companies and 20 per cent in state-owned banks, they are not allowed to hold shares in LIC.
Enabling this will enable foreign pension funds, insurance companies and mutual funds to participate in the IPOs of India’s largest life insurer.
The government is keen to complete the listing this financial year to help with budgetary constraints and late last month selected 10 merchant banks out of sixteen that had bid to start the process.
Overall, merchant banks will earn a fee of about 100 million rupees ($1.36 million), higher than the token fee charged on some IPOs of state-owned firms in the past, but still much less than the fee for private listings. Is.
For example, food delivery startup Zomato paid $31 million in fees for listing earlier this year, according to Dealogic.
However, as with almost all major banks except Morgan Stanley, low fees have not been a deterrent.
One merchant banker said, “We couldn’t care less about the money being given out. This is the biggest IPO in recent times and will probably be the biggest in the next 5 years.”
.