India’s largest insurance company may file papers of its upcoming IPO with SEBI by November. This IPO will be the biggest IPO ever in the history of the country.
Talking to PTI, a Finance Ministry official said that our target is to bring an IPO within this financial year and for this we have also fixed a time line.
The government had appointed 10 merchant bankers for this IPO last month. These include the names of Goldman Sachs (India) Securities Pvt Ltd, Citigroup Global Markets India Pvt Ltd and Nomura Financial Advisory and Securities (India) Pvt Ltd. He will manage the country’s biggest IPO. Apart from this, some more banks have also been appointed to manage this IPO.
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This includes SBI Capital Market Ltd, JM Financial Ltd, Axis Capital Ltd, BofA Securities, JP Morgan India Pvt Ltd, ICICI Securities Ltd and Kotak Mahindra Capital Co Ltd. Are included. This official further said that once the paper is filed with SEBI, merchant bankers will organize road shows for investors in the country and abroad by January.
Cyril Amarchand Mangaldas has been appointed as the legal advisor for this IPO. The government aims to get LIC listed in the market before the financial year ending next March.
The official further said that the Finance Ministry is in the process of assessing the embedded value of LIC. Once this work is completed, the panel of ministers related to disinvestment will decide the government stake to be sold through this IPO. The government has appointed actuarial firm Milliman Advisors LLP India to calculate the embedded value of LIC.
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The government is also considering allowing foreign investors to buy stake in the country’s largest insurance company LIC. As per SEBI norms, FPIs can buy stake in its public offer. However, there is no provision for foreign investment in the LIC Act. Therefore, some modification will be required to make LIC’s rules in line with SEBI’s rules for purchase of foreign investors in public offers.
In fact, the Cabinet Committee on Economic Affairs had approved an IPO in July. It is also to be noted that the government has set a disinvestment target of Rs 1.75 lakh crore for the financial year 2021-22. LIC’s IPO will play an important role in achieving this goal. So far this year, the government has raised Rs 9,110 crore by selling stake in state-run companies and SUTTI in Axis Bank.
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