Life Insurance Corporation of India could file a prospectus in the final week of January for what would be the nation’s biggest initial public offering, according to people with knowledge of the matter.
The state-run insurer plans to file the draft IPO prospectus in the week starting Jan. 31, which will provide the embedded value of LIC as well as the number of shares on offer, the people said, asking not to be identified as the deliberations are private. The ongoing virus wave may disrupt schedules, they added.
A finance ministry official wasn’t immediately available for comment. A representative for LIC didn’t immediately reply to an email seeking comment.
The planned deadline would set Prime Minister Narendra Modi’s government on track to list LIC by the end of March, providing a much-needed boost to revenue. His administration had sought to sell a 5%-10% stake in the insurer, fetching as much as 10 trillion rupees, Bloomberg News had reported in September.
The government is still awaiting the completed valuation report, the people said, and projected valuations may change based on that. They added that LIC could be valued at as high as five times the so-called embedded value — higher than 3-4 times for most insurers.