India begins the privatisation of its huge life-insurance company

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But is the country’s largest-ever IPO a dud?

Save time by listening to our audio articles as you multitaskis 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.

has a staggering 286m policies in force and collects 64% of all of India’s written premiums . The firm has $507bn in assets under management, triple the amount of its 23 private competitors combined. Although such dominance gives the firm and its products unmatched scale—a big advantage in an industry that runs on trust—the 659-page listing prospectus makes it clear that there are cracks in’s armour. Premiums have been growing by 9% annually over the past five years, a good performance but one that pales in comparison to its Indian competitors, many of which have been growing at twice that rate.

 

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Selling the countries jewellery ? ? ?

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