India seeks $109 billion valuation in LIC’s IPO

Bloomberg

India’s government is seeking a valuation of between 8 trillion rupees ($109 billion) to 10 trillion rupees for Life Insurance Corporation (LIC), in what’s slated to be the nation’s biggest initial public
offering (IPO).
The possible valuation is based on preliminary talks and may change after detailed
discussions, due diligence and an official valuation report. The government is considering selling 5%-10% of company, which could raise between 400 billion rupees and 1 trillion rupees.
Prime Minister Narendra Modi’s government is pushing ahead with LIC’s IPO to help plug a widening budget gap as it aims to raise 1.75 trillion rupees by March through divestments. LIC’s stake sale is crucial for the government to achieve its broader disinvestment target. India may also allow foreign direct investment in LIC to ensure a diversified and strong demand across various segments of
investors.
Bankers formally met government and LIC officials last week to formally kick off the process. IFR had reported on the estimated valuation earlier.