Five reasons why the LIC IPO could be India's Aramco moment

When Aramco came out with the world's biggest IPO, the Saudi govt raised $25.6 billion by diluting just 1.5%, valuing the company at $1.7 trn; Indian govt plans to divest 5% for $8.7 bn in LIC

In 2019, Saudi Arabian Oil Co (Aramco) came out with the world’s biggest Initial Public Offering (IPO). The Saudi government raised $25.6 billion by diluting just 1.5 per cent stake, valuing the company at $1.7 trillion. The Indian government plans to divest 5 per cent equity for Rs 65,000 crore ($8.7 billion) in the insurance behemoth Life Insurance Corporation (LIC). Here are a few charts which explain why LIC’s IPO is touted as India’s Aramco moment:

Issue size dwarfs amount mobilised during full year
 

At Rs 65,000 crore, the IPO size is higher than the cumulative amount raised during any