LIC to file draft IPO doc with SEBI by November

Picture Supply: PTI

LIC to file draft IPO doc with SEBI by November

A finance ministry official mentioned the nation’s largest insurance coverage firm LIC might file draft paperwork with Sebi by November for the most important IPO within the nation’s historical past.

“Our goal is to launch an IPO on this monetary 12 months and we’ve set a strict deadline,” the official mentioned. DRHP might be filed by November.

The federal government final month roped in 10 service provider bankers, together with Goldman Sachs (India) Securities Pvt Ltd, Citigroup International Markets India Pvt Ltd and Nomura Monetary Advisory and Securities (India) Pvt Ltd, to handle the mega preliminary public providing of nation’s largest insurer LIC. was appointed.

Different chosen bankers embrace SBI Capital Markets Restricted, JM Monetary Restricted, Axis Capital Restricted, BofA Securities, JP Morgan India Personal Restricted, ICICI Securities Restricted and Kotak Mahindra Capital Firm Restricted.

As soon as the draft pink herring prospectus (DRHP) is filed, service provider bankers will maintain international and home roadshows for buyers by January, the official mentioned.

Cyril Amarchand Mangaldas has been appointed because the authorized advisor to the IPO.

The federal government is aiming to listing the insurance coverage big inside the present monetary 12 months ending March.

The official mentioned the ministry is within the means of assessing the underlying worth of the life insurer and as soon as that’s finished, the ministerial panel on disinvestment will determine on the federal government stake, which might be disinvested via the IPO.

The federal government has appointed actuarial agency Milliman Advisors LLP India to calculate the embedded worth of LIC earlier than the preliminary public providing.

The federal government can also be contemplating permitting international buyers to take stake within the nation’s largest insurance coverage firm LIC. As per SEBI laws, Overseas Portfolio Traders (FPIs) are allowed to purchase shares in a public providing. Nonetheless, since there is no such thing as a provision for international funding within the LIC Act, the proposed LIC IPO must align with SEBI norms with regard to international investor participation.

The Cupboard Committee on Financial Affairs had in July authorised the preliminary public challenge proposal of Life Insurance coverage Company of India. LIC’s itemizing might be essential for the federal government to satisfy its 2021-22 (April-March) disinvestment goal of Rs 1.75 lakh crore.

Thus far this fiscal, Rs 9,110 crore has been raised via minority stake sale in PSUs and SUUTI stake sale in Axis Financial institution.

Learn additionally: India anticipated to develop by over 7 per cent on this decade: CEA KV Subramaniam

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