Local as well as overseas investors are showing strong interest in the initial public offering (IPO) of Life Insurance Corp. of India (LIC), with at least 12 top fund managers committing to bring in around ₹18,000 crore as anchor investors, said a Mint report quoting two people directly aware of the development.
At least five Indian asset managers, no less than three sovereign funds, two global pension fund managers and two hedge funds have agreed to be anchor investors in the LIC IPO, the people said, as per the Mint report.
Anchor investors are institutional investors that agree to buy shares worth at least ₹10 crore at a pre-agreed price in an IPO before it opens for public subscription.
According to the Mint report, domestic mutual funds may invest ₹7,000-8,000 crore as anchor investors through their equity-oriented growth mutual fund schemes. All investors, including foreign ones, coming in as anchor investors in the LIC IPO may be subject to a lock-in period of one year.
Meanwhile, LIC's board will likely meet over the weekend to finalise its results for fiscal 2022 and will file a revised public offer document by mid-next week, reported Economic Times.
The government is keen to complete LIC’s public issue, likely to be the largest ever in the country, by the first week of May given the choppy stock markets and assorted risks arising from geopolitical events as well as rising inflation.