A man cleans a hoard of Life Insurance Corporation of India (LIC) before the start of a news conference on the launch of LIC’s initial public offering (IPO), in Kolkata, India April 29, 2022. REUTERS /Chowdhuri Rupak/File Photo

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MUMBAI, May 3 (Reuters) – The IPO of Life Insurance Corporation (LIC), India’s largest insurer, is off to a good start, with 59.3 million shares reserved for anchor investors subscribed at 949 rupees each , according to an exchange filing Tuesday.

The Indian government said it plans to raise up to $2.74 billion, just a third of its original target, by selling a 3.5% stake in LIC in the biggest initial public offering ( IPO) of the country. Read more

Anchor investors are high-profile institutional investors who are allocated shares prior to the opening of subscription for retail and other investors, and must agree to hold their shares for a certain period after listing.

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LIC’s offering is expected to open to other investors on May 4 and close on May 9. The indicative price range has been set between 902 and 949 rupees per share, with 56 billion rupees ($732 million) of shares reserved for core investors.

Norwegian wealth fund Norges Bank Investment Management and the Singapore government are among the anchor book subscribers, according to the filing.

Along with other global funds, national mutual fund companies such as HDFC Mutual Fund, SBI, ICICI and Kotak also stepped in as lead investors.

More than 20 investors had expressed interest in subscribing to the anchor book, according to two banking sources.

Foreign institutional investors had some concerns about LIC’s IPO, but global pension funds had shown “good interest”, the LIC chairman said last week. Read more

($1 = 76.5150 Indian rupees)

($1 = 76.4640 Indian rupees)

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Reporting by Nupur Anand and Maria Ponnezhath; Editing by Sanjeev Miglani, Mark Potter and Anil D’Silva

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