LIC IPO: Govt mulls selling 7% stake for ₹50,000 cr in insurer next month

India is considering seeking around Rs 50,000 crore ($6.6 billion) next month from the initial public offering of state-owned Life Insurance Corp., people with knowledge of the matter said.

The government is discussing selling as much as a 7% stake in LIC through the listing, according to the people, who asked not to be identified because the information is private. It aims to launch the share sale before current approvals for the offering expire on May 12, the people said.

Bloomberg News first reported last month that India was targeting a May timeline to launch the IPO. The listing forms a key part of plans by Prime Minister Narendra Modi’s administration to divest state assets to fund a yawning budget deficit.

The government and its advisers are considering seeking a valuation of about 1.25 to 1.5 times LIC’s embedded value, the people said. Officials are still discussing potential terms of the offering, and the fund-raising target could still change, the people said.

A representative for LIC declined to comment, while calls and an email to the finance ministry spokesperson remained unanswered.