LIC’s looming IPO weighs on insurer shares, investors say

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MUMBAI: Next month’s mammoth stock market debut for Life Insurance Corporation (LIC) has battered shares in other insurers as investors trim their holdings to make room for the state-owned giant, fund managers and analysts said.
The flotation, potentially raising $8 billion, likely will continue to drag on LIC’s competitors for about a year and could spread to other sectors, they said.
The government filed draft papers on Sunday with market regulator to sell 5% of the company’s shares in what could be the world’s third-biggest insurance IPO ever and one of this year’s biggest Asian share sales, according to Refinitiv data.
“This is the biggest one and you have to make space for this,” said a fund manager who asked not to be named.
“Historically, market leaders are the first ones that list. This is a rare moment when a large player is being listed very late.”
The 66-year-old company,…

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