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Indian insurer LIC's IPO closes, oversubscribed nearly threefold

But analysts say prospective listees will have to pare back valuations

Life Insurance Corp. of India's IPO has proved popular with retail investors.    © Reuters

BENGALURU -- The initial public offering of state-owned insurer Life Insurance Corp. of India was oversubscribed 2.95 times on the back of frenzied bidding by small investors despite a slump in public markets triggered by interest rate hikes in the country and the U.S. last week.

The IPO of a 3.5% stake has become the biggest in India. The government had hoped to raise 205.57 billion rupees ($2.7 billion). Around 57.31% of the offer was allocated to small investors -- policyholders, who received a 60-rupee discount, along with employees and retail investors, who were given a discount of 45 rupees.

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