Indian officials are taking unprecedented steps — including adjusting capital markets rules, sending text messages and publishing newspaper ads — in an effort to ensure the record-setting initial public offering (IPO) of Life Insurance Corp of India is a success, according to a Bloomberg report Tuesday (Jan. 11).
The IPO could raise between 400 billion rupees ($5.4 billion) and 1 trillion rupees ($13.5 billion) this quarter and it’s featured as a key part of Prime Minister Narendra Modi’s economic agenda since the proceeds from the state-run insurer will help the government reaching its budget deficit target.
“The size of LIC is breathtaking,” said Abhay Agarwal, fund manager at Mumbai-based PiperSerica Advisors Pvt, in the Bloomberg report. “It will require significant marketing efforts to cross the 500 billion rupeesline,” he said, noting it’s not just about governmental regulations and adjustments.
Indian authorities plan to amend their rules on foreign direct investment to make it easier to bring in investors from outside the country for the Life Insurance Corp. of India IPO, one official told Bloomberg. Because the insurer is a special entity created by an act of Parliament, foreign investors aren’t allowed.
The Securities and Exchange Board of India is planning to recruit 120 senior executives across its legal, information technology, research and general and official language departments — totaling about 14% of its employees — to get involved with the Life Insurance Corp. of India IPO.
Related: B2B eCommerce Platform Udaan Plans IPO After $250M Fundraise
Last week, Indian B2B eCommerce platform udaan said it’s planning to launch an IPO in 18 months after closing a $250 million funding round that came through a $200 million convertible note.
The company had a valuation of $3.1 billion during its $280 million fundraising round in January 2021 and will set a new valuation either during its pre-IPO quests for fresh capital or at the time of the IPO in the middle of 2023.
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