Insurers to spur IPO bonanza in IndiaAugust 22 2017 by InsuranceAsia News Staff
India’s stock market is expected to see a swirl of initial public offerings from insurers seeking to participate in the local market and explore rising investor demand for financial assets.
At least four insurers in India are hoping to launch stock offers by the end of the year, according to sources with direct knowledge on the matter.
With these activities, total fundraising from first-time share sales in India could balloon to Rs500 billion (US$7.8 billion) this year, said Ajay Saraf, head of investment banking at ICICI Securities, India’s top IPO underwriter.
The value would represent an 85% hike from 2016 and exceed the current record of Rs363 billion achieved in 2010.
HDFC Standard Life Insurance Co and SBI Life Insurance are looking at raising Rs100 billion and Rs85 billion, respectively.
And India’s IPO market is presently suffering from a lack of insurance stocks, according to market observers.
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