India’s plan to sell more shares in its insurance giant was no secret. But the government surprised the market by how much it raised and the pace of the deal.
Keeping details closely held until the final hours — even from some advisers — and moving quickly allowed the government to more than double its initial sale plan of Life Insurance Corp. of India shares, raising $3.3 billion. That’s the nation’s biggest secondary offering through a stock exchange.
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Officials in the state divestment department kept the launch date a secret to prevent traders from taking positions ahead of the sale and pushing the stock lower before the government could sell its shares, according to people familiar with the matter. Even the banks advising on the deal were told at different times, with one learning about the decision shortly before informing the stock exchanges on Monday, the people said.
