LIC will submit draft papers for initial public deal with SEBI by November 2021The nation's largest insurance company, Life Insurance coverage Corporation (LIC), is most likely to file draft papers with Securities and Exchange Board of India (SEBI) by November for the largest initial public offer (IPO) in the nation's history, a financing ministry official has actually stated.
We target to bring the IPO within this fiscal and we have actually set strict timelines.
The draft red herring prospectus (DRHP) would be submitted by November, the official said.Once the DRHP is submitted, merchant bankers will hold global and domestic roadshows for financiers by January, the authorities informed further.The government last month designated 10 merchant bankers, including Goldman Sachs (India) Securities Private Limited, Citigroup Global Markets India Private Limited and Nomura Financial Advisory and Securities (India) Private Minimal to manage the LIC IPO.Other picked bankers are SBI Capital Market Limited, JM Financial Limited, Axis Capital Limited, BofA Securities, J P Morgan India Private Limited, ICICI Securities Limited and Kotak Mahindra Capital Company Limited.Cyril Amarchand Mangaldas has been selected as legal consultant for the IPO.The government is intending to note the insurance coverage behemoth within the current financial year.The ministry is in the process of estimating the ingrained worth of the life insurance company and when that is done, the ministerial panel on disinvestment will select the government stake that will be divested through IPO, the official said.The government has appointed actuarial firm Milliman Advisors LLP India to calculate the ingrained value of LIC ahead of the initial public offering.The government is also mulling permitting foreign financiers to get stakes in nation's biggest insurer.
Based on SEBI guidelines, foreign portfolio investors (FPIs) are permitted to buy shares in a public offer.
Nevertheless, given that the LIC Act has no provision for foreign financial investments, there is a requirement to line up the proposed LIC IPO with SEBI standards concerning foreign financier participation.The Cabinet Committee on Economic Affairs had in July cleared the initial public offering proposal of Life Insurance coverage Corporation of India.The listing of LIC will be essential for the government in satisfying its disinvestment target of Rs 1.75 lakh crore for 2021-22.