Goldman Sachs, J P Morgan Chase amongst 10 service provider bankers to handle LIC IPO
The authorities has shortlisted 10 service provider bankers, together with Goldman Sachs Group Inc., J P Morgan Chase & Co, and ICICI Securities, to handle the mega preliminary public providing (IPO) of the nation’s largest life insurer LIC.
As many as 16 home and worldwide companies had made shows earlier than the Department of Investment and Public Asset Management (DIPAM) on August 26 to behave as e-book operating lead managers (BRLMs) for the IPO — touted to be the largest share sale within the nation’s historical past.
“Goldman Sachs Group Inc, JPMorgan Chase & Co, ICICI Securities Ltd, Kotak Mahindra Capital Co, JM Financial Ltd, Citigroup Inc and Nomura Holdings Inc are among the 10 BRLMs that have been shortlisted,” an official mentioned.
With the service provider bankers in place, as soon as the embedded valuation of LIC is arrived at, the federal government will go forward and file draft IPO papers with market regulator Sebi.
Actuarial agency Milliman Advisors LLP India is understanding the embedded worth of LIC, whereas Deloitte and SBI Caps have been appointed as pre-IPO transaction advisors.
The authorities goals to come back out with the IPO and subsequent itemizing of Life Insurance Corporation (LIC) on the bourses within the January-March quarter of 2022.
The authorities can be mulling permitting international traders to choose up stakes within the nation’s largest insurer LIC. As per Sebi guidelines, international portfolio traders (FPI) are permitted to purchase shares in a public provide.
However, for the reason that LIC Act has no provision for international investments, there’s a must align the proposed LIC IPO with Sebi norms concerning international investor participation.
The DIPAM on July 15 had invited purposes for appointment of as much as 10 service provider bankers for LIC IPO. The final date for bidding was August 5.
The Cabinet Committee on Economic Affairs final month cleared the preliminary public providing proposal of Life Insurance Corp of India.
The ministerial panel often known as the Alternative Mechanism on strategic disinvestment will now resolve on the quantum of stake to be divested by the federal government.
“The potential size of the IPO is expected to be far larger than any precedent in Indian markets,” the division had mentioned.
The itemizing of LIC will probably be essential for the federal government in assembly its disinvestment goal of Rs 1.75 lakh crore for 2021-22 (April-March).
So far this fiscal, Rs 8,368 crore has been mopped up via minority stake gross sales in PSU and sale of SUUTI stake in Axis Bank.
