LIC IPO may be split into two offerings

August 13, 2021 11:58 AM

In a first, state-owned Life Insurance Corp (LIC) may split its initial public offering (IPO) into two parts with a gap of a few months.

LIC is planning to mobilise Rs 1 lakh crore through the IPO, The Times of India has reported. There is a view that the market may not have the capacity to absorb the entire issue of such a massive offering in one go.

Another option being discussed is that cornerstone investors, marquee asset managers can put in large funds ahead of the IPO, the report said.

"All the options are on the table (to make the LIC offer a success)," an official told the publication.

Officials also believe that, since so many IPOs have already been closed and more are in the offing, a large amount of investors' funds would already be absorbed, sources told TOI.

From January-July, more than Rs 50,000 crore raised via IPOs. Experts told Moneycontrol that about 18 companies could raise about Rs 28,000 crore through their IPOs in August.

Reuters separately reported that the government expected to list state-owned Life Insurance Corp (LIC) by the end of fiscal year 2021-22.

Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM) recently said the government planned to complete privatisation of national carrier Air India and Bharat Petroleum Corporation by the end of the current fiscal year.

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