LIC IPO: Centre Expecting Foreign Institutional Investment Of Up To 20%, Says Report
The government is also mulling allowing foreign investors to pick up stakes in the country's largest insurer LIC.
New Delhi: Days after Modi government picked 10 merchant banks for the sale that’s planned for between January and March 2022, Centre is now considering allowing foreign institutional investment of up to 20% in Life Insurance Corporation (LIC), news agency Reuters said citing a government source.
The government has appointed 10 merchant bankers including Goldman Sachs (India) Securities, Citigroup Global Markets India, and Nomura Financial Advisory and Securities India to manage the mega initial public offering of country's largest insurer LIC.
Other selected bankers include SBI Capital Market, JM Financial, Axis Capital, BofA Securities, JP Morgan India, ICICI Securities, and Kotak Mahindra Capital Co Ltd, a circular on the divestment department website said.
If and when it happens, the listing of LIC is going to be India's biggest-ever IPO, with the government expecting to raise up to $12.24 billion from its stake sale.
The Union Cabinet recently approved the disinvestment of equity in LIC and the process is on to appoint merchant bankers to launch the IPO.
According to reports, the disinvestment department had invited applications for the appointment of merchant bankers on July 15. Post this, 16 merchant bankers made presentations for managing listing and partial disinvestment of state-run insurer.
"Government has finalised the book running lead managers and some other advisors for the IPO of LIC," DIPAM Secretary Tuhin Kanta Pandey tweeted.
Meanwhile, the government is also mulling allowing foreign investors to pick up stakes in the country's largest insurer LIC. As per Sebi (Securities and Exchange Board of India) rules, foreign portfolio investors (FPI) are permitted to buy shares in a public offer.
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