Govt slashes expected proceeds from LIC IPO to a third
The amount New Delhi expects to raise from the initial public offering (IPO) of the state-owned insurer is a billion dollars short of its projection last week, and a third of the more than $8 billion it initially planned to raise in February
The latest reduction is due to the government's decision to price the issue between Rs 902 and Rs 949 per share. Image: Shutterstock
Mumbai (Reuters) - India expects to raise up to $2.74 billion from selling a 3.5% stake in Life Insurance Corp's (LIC) IPO, according to a prospectus filed late on Tuesday, just a third of its original hopes after investors questioned the insurers' growth potential.
The amount New Delhi expects to raise from the initial public offering (IPO) of the state-owned insurer is a billion dollars short of its projection last week, and a third of the more than $8 billion it initially planned to raise in February.
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The latest reduction is due to the government's decision to price the issue between Rs 902 and Rs 949 per share, instead of the more than Rs 1,100 per share envisaged last week, according to the IPO papers.
At the lower end of the current price band, the government would raise $2.61 billion.
The government has tempered its expectations for the issue after roadshows with nearly 180 big investors flagged up concerns about growth prospects for the insurance giant that dominates nearly a third of the market.
