LIC IPO may be split into two offerings

Wednesday 18th August 2021 06:46 EDT
 

In a first, state-owned Life Insurance Corp (LIC) may split its initial public offering (IPO) into two parts with a gap of a few months. LIC is planning to mobilise £10 billion through the IPO, according to a report. There is a view that the market may not have the capacity to absorb the entire issue of such a massive offering in one go.

Another option being discussed is that cornerstone investors, marquee asset managers can put in large funds ahead of the IPO, the report said. "All the options are on the table (to make the LIC offer a success)," an official said.

Officials also believe that, since so many IPOs have already been closed and more are in the offing, a large amount of investors' funds would already be absorbed. From January-July, more than £5 billion are raised via IPOs. Experts said that about 18 companies could raise about £2.8 billion through their IPOs in August.


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