The government has reached out to investors to apprise them about Life Insurance Corporation of India’s (LIC’s) growth and prospects as it prepares for the country’s largest initial public offering (IPO).
Preliminary presentations have been made to inform investors on how the organisation is being restructured ahead of the IPO, along with its financials, so that the IPO process can be hastened once its embedded value is derived.
“A detailed presentation has been made to investors, giving them details on how LIC is positioned beyond what is known.
"This includes how LIC is being restructured ahead of the IPO, and investors are keen to know that,” said an official.
In the Finance Bill, 2021, the government had proposed a slew of changes to the LIC Act, 1956.
The changes include introducing corporate governance provisions in line with the Securities and Exchange Board of India’s norms and that the exchequer would hold at least 75 per cent in the insurer for five years after the IPO.
"Generally, the companies (planning listing on the exchanges) conduct such an exercise before pre-IPO placement, but pre-IPO placement is not being considered for LIC at the moment.
"The exercise is being conducted so that some time is saved as we prepare for the IPO,” said another official.
The government is trying to understand what investors are looking forward to with respect to LIC’s IPO, the official added.