India's Largest IPO Raises $736M Ahead of Listing, Attracts Foreign Investment

India's Largest IPO Raises $736M Ahead of Listing, Attracts Foreign Investment
  • India’s largest-ever public offering has attracted anchor investors, including Norway’s sovereign wealth fund and the Singaporean government, raising ₹56.3 billion ($736 million) ahead of its initial public offering, Bloomberg reports.
  • The 123 anchor investors joining Life Insurance Corp of India’s IPO committed to purchasing shares at ₹949 per share, the top end of a marketed range. 
  • LIC is the country’s oldest insurer and had the market to itself until the government opened it up to the private competition in 2000. 
  • LIC has a 60% market share of India’s 24-company-strong life insurance market, Bloomberg notes.
  • Due to the Ukraine crisis, the Indian government has pared back its original fundraising goal by ~ 60%. 
  • The investors included the Norwegian fund, the Singapore government, and 15 domestic mutual funds accounting for 71% of the anchor allocation. 
  • The IPO previously drew comparisons with the $29.4 billion listing of Gulf oil giant Saudi Arabian Oil Co.
  • Orders from retail investors for the listing, which could raise ₹210 billion in total, will be taken starting on May 4.
  • Photo via Wikimedia Commons

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