(Bloomberg) -- Life Insurance Corporation of India's board has approved selling a minimum 3.5% stake in an initial public offering, officials told reporters.
The state-run firm is seeking a 6 trillion rupee ($78.5 billion) valuation and could open the offer in the first week of May, the officials said, asking not to be identified citing rules on speaking with the media. Details such as issue price and dates will be known around Wednesday, they added.
The sale is subject to regulatory clearances. Prime Minister Narendra Modi's government needs to amend the Securities Contracts Regulation Act to sell a stake of less than 5%, according to another person briefed on the matter.
Mega India Insurer Looks to Slash IPO as War Hurts Valuations
Valuations have been squeezed by the war in Ukraine, which has dented investor appetite across the world. Modi's administration retains the right to sell as much as 5% of LIC if it receives demand from anchor investors, the officials said.
Sale of 3.5%-5% stake could raise roughly between 210 billion rupees to 300 billion rupees.
India is looking to raise 300 billion rupees through the IPO, about 40% lower than previous estimates as the war in Ukraine dents valuations, Bloomberg News had reported Friday.
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