The listing of LIC will be crucial for the government in meeting its disinvestment target of Rs 1.75 lakh crore for 2021-22 (April-March). So far this financial year, Rs 8,368 crore has been mopped up through minority stake sales in PSU and the sale of SUUTI (Specified Undertaking of the Unit Trust of India) stake in Axis Bank.
Government appoints 10 merchant bankers including Goldman Sachs, Citigroup for managing LIC IPO
PTI, Sep 8, 2021, 5:06 PM IST
Source: PTI
New Delhi: The government has appointed 10 merchant bankers including Goldman Sachs (India) Securities, Citigroup Global Markets India, and Nomura Financial Advisory and Securities India to manage the mega initial public offering of the country’s largest insurer LIC.
Government has finalised the Book Running Lead Managers and some other advisors for the IPO of LIC. Details at https://t.co/hogAv0utar pic.twitter.com/gmNRr8RFOx
— Secretary, DIPAM (@SecyDIPAM) September 8, 2021
Other selected bankers include SBI Capital Market, JM Financial, Axis Capital, BofA Securities, JP Morgan India, ICICI Securities, and Kotak Mahindra Capital Co Ltd, a circular on the divestment department website 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 invited applications for the appointment of merchant bankers on July 15. Following this, 16 merchant bankers made presentations for managing listing and partial disinvestment of Life Insurance Corporation (LIC).
The Department of Investment and Public Asset Management (DIPAM) is also in the process of appointing a legal adviser for the stake sale and the last date for putting bids is September 16. Actuarial firm Milliman Advisors LLP India has already been appointed to assess the embedded value of LIC ahead of the IPO, which is likely in the January-March quarter of 2022.
The government is also mulling allowing foreign investors to pick up stakes in the country’s largest insurer LIC. As per SEBI (Securities and Exchange Board of India) rules, foreign portfolio investors (FPI) are permitted to buy shares in a public offer.
However, since the LIC Act has no provision for foreign investments, there is a need to align the proposed LIC IPO with SEBI norms regarding foreign investor participation. The Cabinet Committee on Economic Affairs had last month cleared the initial public offering proposal of Life Insurance Corp of India.
The ministerial panel known as the Alternative Mechanism on strategic disinvestment will now decide on the quantum of stake to be divested 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.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
Windfall RBI dividend ‘positive’, usage to signal new govt’s fiscal priorities: Ratings agencies
Decided to move on, will continue till successor is found: SPNI MD Singh
Sensex hits new all-time high; Nifty breaches 23,000-mark for first time
IndiGo to introduce business class in select routes this year
Air India gives salary increments to staff; announces target performance bonus for pilots
MUST WATCH
Latest Additions
Chronology of events in Medha Patkar defamation case
Wanted to have an inter-caste marriage but girl and her family did not agree: CM Siddaramaiah
AI anchors to helm DD Kisan relaunch on May 26
NIA arrests one more in Bengaluru’s Rameshwaram cafe blast case
Man tries to open door of flight mid-air, held in Hyderabad