According to people familiar with the situation, India is in talks with Norway’s sovereign wealth fund and GIC Pte as key financial backers for the country’s largest first stock sale, as the government pushes forward with the offer despite an unstable market.
The Abu Dhabi Investment Authority is also in talks to participate in Life Insurance Corporation of India’s first-ever share sale, which may generate up to 210 billion rupees ($2.7 billion), according to people who asked not to be identified because the information is private. They said that BlackRock Inc. and Fidelity had been brought closer together.
According to sources, Prime Minister Narendra Modi’s organization hopes to complete the list of key financial backers in a short period. Individuals stated that discussions are ongoing and that financial supporters may opt not to continue.
Representatives for ADIA, GIC, and the Norwegian sovereign asset declined to comment, while representatives for BlackRock, Fidelity, and the Indian money service did not respond swiftly to requests for comment.
The LIC IPO, which was recently marketed as India’s Aramco second to Gulf oil behemoth Saudi Arabian Oil Co’s. A $29.4 billion offering in 2019, would put India’s capital market to the test. According to Bloomberg data, companies in India raised over $1.1 billion this year through initial public offerings (IPOs). That is not precisely half of the close to $3 billion raised in a comparable period in 2021.
The Indian government wants to sell 221.4 million offers, or a 3.5 percent share, in the LIC IPO for 902 to 949 rupees apiece. On May 2, the donation will be accessible to anchor financial backers. Around 10% of the offers are reserved for LIC policyholders who wish to receive them at a discount from the issue price. Retail investors can also acquire shares at a discount.
Regardless of whether it is valued at the bottom end of the range, LIC will be India’s largest-ever IPO, exceeding the 183 billion rupee offering by One97 Communications, the administrator of Paytm, according to Bloomberg data.