From adjusting capital-markets rules to sending phone messages and publishing newspaper advertisements, authorities and executives are leaving no stone unturned in trying to ensure Life Insurance Corp. of India’s record initial public offering is a success.
Prime Minister Narendra Modi’s government has the IPO — which could raise between ₹ 40,000 crore ($5.4 billion) and ₹ 1 lakh crore this quarter — as a key item in its economic agenda, with proceeds from the state-run insurer essential to reaching a budget-deficit target.
“The size of LIC is breathtaking,” said Abhay Agarwal, fund manager at Mumbai-based Piper Serica Advisors Pvt. While it might be easy for the government to make regulatory amendments needed for the IPO, “it will require significant marketing efforts to cross the ₹ 50,000 crore line,” he added.
