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India to Sell 3.5% Stake in Life Insurance Corp

NEW DELHI/MUMBAI, April 23 (Reuters) - The Indian government is looking to sell a 3.5% stake in state-owned insurance behemoth Life Insurance Corporation of India (LIC), a senior government and banking source told Reuters on Saturday.

The listing is expected to hit the markets in first week of May and details on reservations, discount, issue date and price is likely to be announced by April 27, the sources said.

"There is absolutely no demand in the market right now for IPOs. Considering the volatility in the market, investors are continuing to remain cautious. At such times doing a higher stake sale does not make sense," the investment banking source said.

The finance ministry did not immediately respond to an email seeking comment which was sent outside of business hours.

The government has halved its fundraising goal from a stake sale in LIC to 300 billion rupees ($3.9 billion), having had to cut its valuation estimates after feedback from investors, a government source said on Friday. 

($1 = 76.4600 Indian rupees)

Editing by Swati Bhat and Ros Russell

Source: Reuters

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