FROM adjusting capital markets rules to sending phone messages and publishing newspaper advertisements, authorities and executives are leaving no stone unturned in trying to ensure Life Insurance Corp. of India’s record initial public offering (IPO) is a success. Prime Minister Narendra Modi’s government has the IPO — which could raise between 400 billion rupees (US$5.4 billion) and 1 trillion rupees this quarter — as a key item in its economic agenda, with proceeds from the state-run insurer essential to reaching a budget-deficit target. “The size of Life Insurance Corp. is breathtaking,” said Abhay Agarwal, fund manager at Mumbai-based Piper Serica Advisors Pvt. While it might be easy for the government to make regulatory amendments needed for the IPO, “it will require significant marketing efforts to cross the 500-billion -rupee line,” he added. Authorities will review and amend rules on foreign-direct investment to make it easier to lure investors from abroad, an official said this month without specifying a time frame. Equity stakes among foreigners are allowed for most Indian insurers, but not in Life Insurance Corp., which is a special entity created by an act of parliament. The clearance for foreign stakes in the mega offering would not just permit global funds to participate, but also allow them to buy more after the exchange listing. Regulators made other moves late last month, including tightening rules governing share sales by anchor investors. As it sets the stage for the offering, Life Insurance Corp. has been sending SMSs to policyholders, and last month started publishing newspaper ads with the title, “It’s best in life to be prepared.” The firm asked customers to update some of their personal details and the accounts that allow them to participate in the issue. (SD-Agencies) | 