Government may seek $203 billion value for LIC in biggest IPO

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NEW DELHI: The government is pushing for a valuation of about Rs 15 lakh crore($203 billion) for a state-owned insurer that’s soon expected to file for the nation’s biggest initial public offering (IPO), people familiar with the matter said, even as arrangers awaited a final report on the firm’s estimated worth.
The so-called embedded value of Life Insurance Corporation of India (LIC) is likely to be more than Rs 4 lakh crore, and its market value could be about four times that amount, the people said, asking not to be identified as the discussions are private.
Once the final report is in, the valuation the government is seeking could change.
Embedded value, a key metric for insurers, combines the current value of future profits with the net value of assets.
The gauge will be part of LIC’s IPO prospectus that’s likely to be filed in the week starting January 31. Typically,…

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