The nation’s largest insurer, Life Insurance coverage Company (LIC), is more likely to file draft papers with Securities and Change Board of India (SEBI) by November for the biggest preliminary public supply (IPO) within the nation’s historical past, a finance ministry official has stated.
“We goal to carry the IPO inside this fiscal and we’ve set strict timelines. The draft purple herring prospectus (DRHP) can be filed by November,” the official stated.
As soon as the DRHP is filed, service provider bankers will maintain world and home roadshows for buyers by January, the official knowledgeable additional.
The federal government final month appointed 10 service provider bankers, together with Goldman Sachs (India) Securities Non-public Restricted, Citigroup World Markets India Non-public Restricted and Nomura Monetary Advisory and Securities (India) Non-public Restricted to handle the LIC IPO.
Different chosen bankers are SBI Capital Market Restricted, JM Monetary Restricted, Axis Capital Restricted, BofA Securities, J P Morgan India Non-public Restricted, ICICI Securities Restricted and Kotak Mahindra Capital Firm Restricted.
Cyril Amarchand Mangaldas has been appointed as authorized adviser for the IPO.
The federal government is aiming to listing the insurance coverage behemoth inside the present monetary 12 months.
The ministry is within the technique of estimating the embedded worth of the life insurer and as soon as that’s achieved, the ministerial panel on disinvestment will resolve on the federal government stake that will probably be divested via IPO, the official stated.
The federal government has appointed actuarial agency Milliman Advisors LLP India to compute the embedded worth of LIC forward of the preliminary public providing.
The federal government can be mulling permitting overseas buyers to select up stakes in nation’s largest insurer. As per SEBI guidelines, overseas portfolio buyers (FPIs) are permitted to purchase shares in a public supply. Nevertheless, for the reason that LIC Act has no provision for overseas investments, there’s a must align the proposed LIC IPO with SEBI norms relating to overseas investor participation.
The Cupboard Committee on Financial Affairs had in July cleared the preliminary public providing proposal of Life Insurance coverage Company of India.
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.