India seeks US$3.9b from LIC IPO, half of earlier estimate

THE Indian government is planning to raise about US$3.9 billion, half of what it had earlier estimated, from selling a stake of just over 5 per cent in Life Insurance Corporation of India, a government source told Reuters.

LIC is now valued at around 6 trillion rupees (S$107.2 billion), significantly lower than the government’s earlier estimates after feedback from investors, according to the source, who declined to be identified as the discussions were confidential.

Earlier government estimates had called for the insurer to be valued at around 17 trillion rupees.

The government will need to seek fresh regulatory approval for the listing process, the source added.

The finance ministry did not immediately respond to an email requesting comment.