Indian officials are taking unprecedented steps – including adjusting capital market rules, texting and running newspaper ads – in a bid to ensure that the record-breaking initial public offering (IPO) of Life Insurance Corp of India to be a success, according to Bloomberg. report Tuesday (January 11).
IPO could raise between 400 billion rupees ($ 5.4 billion) to 1,000 billion rupees ($ 13.5 billion) this quarter and is touted as a key part of the prime minister’s economic agenda Narendra Modi since the state insurer’s proceeds will help the government meet its budget deficit target.
“The size of LIC is mind-boggling,” said Abhay Agarwal, fund manager at Mumbai-based PiperSerica Advisors Pvt, in the Bloomberg report. “It will take significant marketing efforts to pass the 500 billion rupee mark,” he said, noting that it is not just about government regulations and adjustments.
Indian authorities plan to change their rules on foreign direct investment to facilitate the entry of investors from outside the country for the IPO of Life Insurance Corp. of India, an official told Bloomberg. Because the insurer is a special entity created by an act of Parliament, foreign investors are not allowed.
The Securities and Exchange Board of India plans to recruit 120 senior executives in its legal, IT, research, and general and official languages departments – totaling around 14% of its employees – to get involved in the IPO of Life Insurance Corp. of India.
Related: B2B e-commerce platform Udaan plans IPO after $ 250 million fundraising
India’s B2B e-commerce platform udaan last week announced plans to launch an IPO in 18 months after closing a $ 250 million round of funding via a $ 200 million convertible note.
The company had a valuation of $ 3.1 billion when it raised $ 280 million in January 2021 and will establish a new valuation either during its search for fresh capital before the IPO or at the time of IPO in mid-2023.