India begins the privatisation of its huge life-insurance company

INASLICLICLIC 1956, part of its experiment with embracing socialism, India created the Life Insurance Company of India () by nationalising and lumping together 245 firms. The experiment took a while to conclude. In 2000 India allowed private firms to sell life insurance again. Two decades later it is selling a 3.5% sliver of on the public market, a first step in what is intended to be a full privatisation. Orders will be taken from investors between May 4th and May 9th. Trading is due to commence on May 17th.The scale of is such that the sale of even this trivial stake will bring in $2.7bn, making it the fifth-largest public offering of the year globally and the largest in India’s history. One of the reasons stated by the company for such a small percentage being sold is that selling more might crowd out investment in other private and public firms in the country’s capital-constrained market. Out of similar concerns, market regulators are already considering waiving a provision that currently requires the dominant shareholder of a listed firm to reduce its ownership stake below 75% within five years.