India is likely to begin formal marketing next month for a planned share sale in Life Insurance Corporation of India that could raise as much as 100 billion rupees ($1 billion), according to people familiar with the matter.
The government plans to sell a stake of about 2% in the state-run insurer in late June or early July to institutional investors, the people said, asking not to be identified because the information is private.
The Department of Investment and Public Asset Management, under India’s Finance Ministry, is working with Goldman Sachs Group Inc., Motilal Oswal Investment Advisors Ltd., BNP Paribas SA and IIFL Capital Services Ltd. to manage the transaction, the people said.
Deliberations are ongoing and details of the deal, including the timing and size, could still change, the people said. Representatives for the government, LIC and the banks didn’t immediately respond to requests for comment.
The offering is set to be among the few sizable equity deals in India next month, as markets contend with the economic fallout from the conflict in Iran. Escalating tensions have driven up crude oil prices, stoking concerns over India’s import bill and prompting Prime Minister Narendra Modi to urge citizens to curb fuel consumption and limit foreign travel.
India sold a 3.5% stake in LIC in May 2022 in what was then the country’s largest initial public offering, raising about 210 billion rupees. The shares were priced at 949 rupees each.
The Indian government owned 96.5% of LIC as of March 31, according to exchange data. The insurer has been granted 10 years from its 2022 listing to meet the Securities and Exchange Board of India’s minimum 25% public shareholding requirement, giving it until May 2032 to comply.
