LIC said to open India’s biggest IPO issue by mid-March

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Life Insurance Corporation (LIC), India’s largest insurer, could publish key details of its mammoth initial public offering (IPO) this month and begin issuing public shares by midMarch, government and banking officials told Reuters on Thursday.

LIC‘s listing is set to be India’s biggest ever IPO, with the government aiming to raise up to 900 billion rupees ($12.2 billion) from selling a stake.

Officials are working on the valuation of the company which manages more than $450 billion of assets, and once that is done they will issue a draft IPO prospectus for investors, a government and two banking sources with direct knowledge of the matter said.

“We will be ready to file the draft prospectus as soon as the final embedded value is communicated and we are working with a timeline of doing that by month end,” one of the banking sources said.

The embedded value, a measure of future cash flows in life insurance companies and the key financial gauge for insurers, will determine the final valuation of LIC.

The finance ministry and LIC did not immediately respond to email requests seeking comment on the timelines. The embedded value had been expected to come out in November.

LIC has a majority share of the life insurance market in India and the government hopes proceeds from the IPO will help bridge a deficit gap this fiscal year. Listing will also bring more transparency into the working of the state-run company.

The insurance giant also has a subsidiary in Singapore and joint ventures in Bahrain, Kenya, Sri Lanka, Nepal, Saudi Arabia and Bangladesh.

“Road shows are expected to start from next month onwards and given the current scenario it is expected to be all virtual,” the source added.

Last year, the government appointed ten investment banks including Goldman Sachs, Citigroup and SBI Capital Market to handle the offering.

Reuters 

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.