Global investors have expressed interest in the flagship issue of the proposed Initial Public Offering (IPO) of the Life Insurance Corporation of India (LIC).
Investors like BlackRock, Blackstone, Govt of Singapore Investment Corp, Abu Dhabi Investment Authority and Capital International are said to have had preliminary discussions with the state insurer for anchor portfolio allocations ahead of the IPO, government officials said. and banking. Economic times.
Although the finance ministry has not yet finalized the timetable for LIC’s IPO, the secretary of the investment and public asset management (Dipam) department, Tuhin Kanta Pandey, previously said the government could start selling shares in the January-March quarter.
LIC, individual bankers and fund houses did not respond to development questions.
Anchor investors are reputable institutional investors such as sovereign wealth funds and mutual funds who receive shares prior to the opening of the company’s IPO for subscription. This stimulates demand for the soon-to-be-listed company, as prime investors are expected to do extensive research before investing in the company.
An anchor book is the list of these institutional investors. An IPO backed by a strong anchor portfolio tends to perform well in the market. Although discussions with the main investors take place well in advance, the allocation of shares is only made one day before the IPO.
“Anchor allowance negotiations are continuing. We are seeing a good response and approaches have been made with only quality institutions,” said a person familiar with the matter. Economic times.
According to the report, the investment banks handling the problem will hold discussions with Canadian pension managers CPPIB and CDPQ, Brookfield, California University Endowment and Kuwait Investment Authority and other funds this week and the following.
The government hired 10 book managers including Goldman Sachs, Citigroup, JP Morgan, Bank of America Securities, Nomura, JM Financial, Kotak Mahindra Capital, ICICI Securities, SBI Caps and Axis Capital to handle the sale of the shares. These managers cater to 100 global fund managers, private equity funds and sovereign and pension fund managers, according to the report.
LIC’s IPO is billed as the largest public offering ever recorded on Dalal Street. The government could dilute a 10 percent stake in the insurance giant, media reports said. The IPO will value LIC at around $ 110 billion.
(Edited by : Thomas abraham)