LIC Disinvestment: Govt Planning To Invite Bids From Merchant Bankers This Month; IPO Likely By January Next yearPrime Minister Narendra Modi and Finance Minister Nirmala Sitharaman.

The central government is set to call for bids from merchant bankers in July to manage the disinvestment of the Life Insurance Corporation of India (LIC), as the government plans to launch its initial public offering (IPO) by January.

Milliman Advisors LLP India was appointed by the Department of Investment and Public Asset Management (DIPAM) in January to evaluate the LIC’s embedded value prior to the IPO.

As per this method, the insurance company’s current value of future profit is also included in its present net asset value (NAV).

“We will invite bids for appointment of merchant bankers in the next couple of weeks, the official said, adding discussions are going on with institutional investors. We are hoping to get regulatory approvals by November-end,” an official in the know of the developments was quoted in a report by the PTI.

Around 10 per cent of the LIC IPO issue size will be reserved for policyholders and this is likely to be the biggest public issue in the history of the corporate India.

So far, SBI Caps and Deloitte have been nominated as the pre-IPO transaction advisors for the life insurer. The public listing of the LIC is integral for the central government to meet its massive Rs 1.75 lakh crore disinvestment target for FY 2021-22.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber