Just days before LIC IPO, report says Centre trims down shares

CNBC-TV18 has learnt that the much-awaited LIC initial public offering (IPO) could be launched as early as next week. Preparations are on for the launch of the proposed mega initial share sale of LIC if approvals are in place, sources told CNBC-TV18. The government is like to make a decision on the IPO this week, they said. The IPO size has been trimmed down from earlier Rs 55,000-60,000 crore to close to Rs 30,000 crore, the sources said. LIC was yet to respond to CNBC-TV18’s query on the news. The IPO size may be slashed to Rs 21,000 crore with a green shoe option of Rs 9,000 crore, Business Standard reported citing people in the know. The IPO is now expected to hit the market on May 2, according to the report. The IPO size implies a market capitalisation of Rs 6 lakh crore as against Rs 10-11 lakh crore envisaged earlier. The government aims to divest about five percent of its 100 percent stake in the state-run insurance behemoth. It has sounded out global sovereign wealth and pension funds such as Abu Dhabi Investment Authority, Singapore-based GIC, three Canadian pension funds and Qatar Investment Authority as being anchor investors for the public issue. During the roadshows, the government reached out to about 180 potential anchor investors. According to officials, the LIC IPO, which is set to be the biggest ever Indian public offer, will require at least 8-10 big-ticket foreign investors. Read all the  Latest News ,  Trending News ,  Cricket News ,  Bollywood News , India News  and  Entertainment News  here. Follow us on  Facebook,  Twitter and  Instagram.