Bloomberg
Published May 03, 2022 12:31AM ET
Updated May 03, 2022 02:00AM ET
Norway, Singapore Wealth Funds Invest in India’s Largest IPO
(Bloomberg) -- India’s largest ever public offering drew anchor investors including Norway’s sovereign wealth fund and the Singaporean government, raising 56.3 billion rupees ($736 million) ahead of its full initial public offering.
The 123 anchor investors joining Life Insurance Corp. of India’s IPO committed to purchase shares at 949 rupees each, the top end of a marketed range, according to a stock exchange statement Tuesday. They include the Norwegian fund and the Singapore government, confirming an earlier report by Bloomberg News, as well as 15 domestic mutual funds accounting for 71% of the anchor allocation. Orders from retail investors for the listing, which could raise as much as 210 billion rupees in total, will be taken starting Wednesday.
LIC’s IPO, which had previously been touted as India’s Aramco (TADAWUL:2222) moment in reference to the $29.4 billion listing of Gulf oil giant Saudi Arabian Oil Co., is testing the depth of India’s capital market. While India’s government has pared back its original fundraising goal by about 60% -- as the war in Ukraine eroded investor appetite -- the offering will still be the nation’s biggest.
Founded in the late 1950s, LIC is the country’s oldest insurer, and had the market to itself until the government opened it up to private competition in 2000. It remains India’s largest insurer with a sales agent in almost every neighborhood across the country of about 1.4 billion people. The listing is expected to lure small-town retail investors and loyal policyholders with an emotional attachment to the firm.
Read more: Small-Town Retail Investors to Prop Up Demand for Mega India IPO
LIC has a 60% market share of India’s 24-company-strong life insurance market, but its hold is shrinking as private players like HDFC Life Insurance Co. and SBI Life Insurance Co. chip away at its dominance. The private sector has been on an aggressive expansion spree during the Covid-19 pandemic, growing new individual policy premiums while LIC struggles.
©2022 Bloomberg L.P.
Written By: Bloomberg
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.