INSUBCONTINENT EXCLUSIVE:
A first-time share sale of that size would be the biggest India has ever seenIndia is gearing up for what could potentially be a slew of
mega initial public offerings.Prime Minister Narendra Modi's government surprised investors on Saturday by saying it will sell part of its
The jumbo sale could fetch the government between Rs 850 billion ($11.9 billion) and Rs 900 billion if it gets done this year, Credit Suisse
Group AG analysts led by Neelkanth Mishra wrote in a note.Meanwhile, Sameer Kalra, a strategist at Target Investing, estimates the IPO to be
valued between Rs 910 billion and Rs 1.01 trillion, given an average 12-month forward price-to-earnings ratio of 30 to 35 times
"That is the range in which all the life insurance companies got listed," he said.A first-time share sale of that size would be the biggest
India has ever seen and could create the nation's most-valuable company by market value
The nation's largest transaction to date was Coal India Ltd.'s $3.4 billion float a decade ago, data compiled by Bloomberg show.No
AppetiteOf course, the LIC IPO faces a number of hurdles, from timing to its sheer size
The government will have to amend the special law under which the insurer was set up in 1956, and secure a buy-in from the employees' union
as part of preparations for the mega share sale.While everything depends on the government's execution, investors don't have the appetite
for such a big issuance at the moment, said Deven Choksey, managing director at KR Choksey, a Mumbai-based wealth manager
Assuming that the government raises Rs 400 billion, that will represent a 5 per cent dilution, he added.Meanwhile, another big deal is also
lining up: Tower Infrastructure Trust, the investment trust that manages the mobile-phone tower business of Reliance Industries Ltd., filed
last week for a first-time sale of as much as $3.5 billion
Canadian asset manager Brookfield Asset Management Inc
has a stake in the trust.Excluding the potential float of LIC, Tower Infrastructure Trust stands to be the largest Indian IPO on record,
data compiled by Bloomberg show
The last time the nation saw deals surpassing $1 billion was in 2017, when a slew of insurance companies went public, including SBI Life
and General Insurance Corp
of India.More imminently, SBI Cards and Payment Services is expected to launch an IPO that could raise more than $1 billion as early as this
Last year, Embassy Office Parks REIT's $689 million sale was the nation's biggest, and companies raised just $2.87 billion in total through
new share offerings, the data show.Central RetailThailand stock exchangeSize up to $2.6bBooks close Feb
TBDCIMB, MaybankGongniu GroupShanghai exchangeSize $519mListing TBASinolink SecuritiesMore ECM situations we are following:The world's top
IPO market is seeing the impact of the novel coronavirus outbreak: a Chinese biotech firm decided to postpone investor meetings for its Hong
extended the closing date of its follow-on share sale for a second time as the Indian telecom-equipment maker received bids for a little
more than half the shares on offer.
