The anchor investor portion of Life Insurance Corporation of India's (LIC) initial public offering (IPO) has been oversubscribed due to strong demand, CNBC TV-18 reported quoting sources on May 2.
Norges Bank Investment Management and GIC -- sovereign wealth funds of Norway and Singapore respectively -- are likely to have anchored the public issue.
The IPO opened today for anchors and will run for the public from May 4-9.
LIC, on course for its Rs 21,000 crore IPO, aims to raise up to Rs 5,630 crore at the upper end of the price band from anchors. The firm has reserved around 59.29 million shares for the anchor portion.
The government has been given permission by the Securities and Exchange Board of India (Sebi) to sell 3.5 percent of its stake in the insurer through the IPO.
Earlier the government had announced an IPO size of 5 percent but was trimmed to 3.5 percent last month due to market conditions.
The company's embedded value - or measure of consolidated shareholders value in an insurance firm - was estimated at ₹5.4 lakh crore in September. The evaluation was done by the international actuarial firm Milliman Advisors.
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