The government is seeking around Rs 50,000 crore next month from the initial public offering of state-owned insurance giant Life Insurance Corp. (LIC), Bloomberg reported on Tuesday.
The government is discussing selling as much as a 7% stake in LIC through the listing, according to the report.
The government has time till 12 May to launch the IPO without filing fresh papers with market regulator Sebi. Keeping an eye on that, the government is aiming to launch the share sale before current approvals for the offering expire.
At 7% stake sale, the LIC IPO would be biggest ever in the history of Indian stock market and once listed LIC's market valuation would be comparable to top companies like RIL and TCS.
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The government and its advisers are considering seeking a valuation of about 1.25 to 1.5 times LIC’s embedded value.
Officials are still discussing potential terms of the offering, and the fund-raising target could still change.
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