Government-backed Life Insurance Corporation of India (LIC) has filed papers with the markets regulator for its initial public offering (IPO), said to be the largest flotation ever in India’s history. 

As per the draft filed with the Securities and Exchange Board of India (SEBI), the government plans to sell 316.25 million shares, which amounts to 5% of the life insurer’s total equity base. 

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The IPO, which is fully an offer for sale, is expected to fetch the government nearly $8bn after it decided to reduce the target due to market conditions, a source told Reuters. 

The life insurer will reserve a portion of the offering not more than 5% for employees. Another portion of up to 10% of the offering will be kept for policyholders, while at least 35% of the offering will be reserved for retail investors. 

LIC’s embedded value currently stands at $71.56bn (INR5.39trn). 

The pricing of the IPO is yet to be decided and the listing is expected to happen by the end of March 2022.

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With over $500bn of assets under management, LIC controls over 60% of India’s life insurance market by premiums. At the end of September 2021, LIC had a staff headcount of over 105,000. 

As per Indian Express’ report, the insurer may allocate up to 60% qualified institutional buyers’ share to anchor investors, of which one-third will be reserved for the country’s mutual funds.

LIC has chosen SBI Capital Markets, JM Financial, Citigroup, JP Morgan, Nomura, Kotak, Goldman Sachs, Axis Capital, ICICI Securities and BofA Securities as book-runners for the IPO.