LIC IPO moves ahead: Govt appoints 10 merchant bankers; Goldman, Citi, Nomura, more

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LIC IPO moves ahead: Govt appoints 10 merchant bankers; Goldman, Citi, Nomura, more

The government has delegated 10 merchant bankers including Goldman Sachs (India) Securities, Citigroup Global Markets India, and Nomura Financial Advisory and Securities India to deal with the uber initial public offering of the country’s biggest insurer LIC.

Other chose bankers incorporate SBI Capital Market, JM Financial, Axis Capital, BofA Securities, JP Morgan India, ICICI Securities, and Kotak Mahindra Capital Co Ltd, around on the divestment department site said.

“Government has finalised the book running lead managers and some other advisors for the IPO of LIC,” DIPAM Secretary Tuhin Kanta Pandey tweeted.

The disinvestment department had welcomed applications for the appointment of merchant bankers on July 15. Following this, 16 merchant bankers made presentations for overseeing listing and partial disinvestment of Life Insurance Corporation (LIC).

The Department of Investment and Public Asset Management (DIPAM) is likewise during the time spent naming a legal adviser for the stake deal and the last date for putting offers is September 16.

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Actuarial firm Milliman Advisors LLP India has as of now been selected to survey the inserted worth of LIC in front of the IPO, which is probable in the January-March quarter of 2022.

The government is likewise reflecting permitting foreign investors to get stakes in the country’s biggest insurer LIC. According to Sebi (Securities and Exchange Board of India) rules, foreign portfolio investors (FPI) are allowed to purchase partakes in a public offer.

Nonetheless, since the LIC Act has no provision for foreign investments, there is a need to adjust the proposed LIC IPO with Sebi standards in regard to foreign investor participation.

The Cabinet Committee on Economic Affairs had last month got the initial public offering proposition free from Life Insurance Corp of India.

The ministerial board known as the Alternative Mechanism on strategic disinvestment will presently settle on the quantum of stake to be stripped by the government.

“The potential size of the IPO is expected to be far larger than any precedent in Indian markets,” the department had said.

The listing of LIC will be pivotal for the government in gathering its disinvestment focus of Rs 1.75 lakh crore for 2021-22 (April-March).

So far this financial year, Rs 8,368 crore has been wiped up through minority stake sales in PSU and the offer of SUUTI (Specified Undertaking of the Unit Trust of India) stake in Axis Bank.

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