Kathmandu: The government of India is preparing to approve up to 20 per cent foreign investment in the Life Insurance Corporation of India (LIC). LIC is expected to issue the largest primary share in the Indian capital market. Citing an Indian government official, Reuters reported that the government is considering allowing foreign institutional investment in LIC.
The Indian government is preparing to raise IRs.90,000 crore by issuing primary shares of LIC. India has announced that foreign institutional investors will be able to invest up to 74 percent in the insurance industry as it has been opening up to 49 percent FDI earlier.
Goldman Sachs Group Inc., JPMorgan Chase & Company and ICICI Securities Ltd. are among the companies offering to act as share sales managers for LIC, according to news published by financial magazine Bloomberg last month. Similarly, Kotak Mahindra Capital, JM Financial Limited, Citigroup Inc. and Nomura Holding Inc. have also made their presentation for share sale management. A total of 16 banks have shown interest in working as sales managers.