The authorities will launch the mega public supply of LIC by March and file draft papers with market regulator Sebi by the tip of this month, an official mentioned.
Finance Minister Nirmala Sitharaman had final week reviewed the progress of the preliminary public providing (IPO) of Life Insurance Corporation (LIC) in a gathering with high officers of the ministry.
The official mentioned the September 2021 quarter financials of LIC are getting finalised in addition to fund bifurcation is in progress.
“We are hopeful of submitting the DRHP (draft red-herring prospectus) with Sebi by month-end or early-February.
“One factor is for certain that IPO will come earlier than the tip of the present fiscal,” the official instructed PTI.
LIC IPO is essential for assembly the Rs 1.75-lakh crore divestment goal set for the present monetary 12 months ended March 2022.
So far this fiscal, Rs 9,330 crore has been mopped up by means of PSU divestment.
The authorities in September final 12 months appointed 10 service provider bankers, together with Goldman Sachs (India) Securities Pvt Ltd, Citigroup Global Markets India Pvt Ltd and Nomura Financial Advisory and Securities (India) Pvt Ltd to handle the mega preliminary public providing of nation’s largest insurer LIC.
Other chosen bankers embrace SBI Capital Market Ltd, JM Financial Ltd, Axis Capital Ltd, BofA Securities, JPMorgan India Pvt Ltd, ICICI Securities Ltd, and Kotak Mahindra Capital Co Ltd.
Cyril Amarchand Mangaldas has been appointed as authorized advisor for the IPO.
The authorities is within the strategy of deciding the quantum of presidency stake that can be divested by means of the IPO.
The authorities can be mulling permitting overseas traders to choose up stakes within the nation’s largest insurer LIC.
According to Sebi guidelines, overseas portfolio traders (FPI) are permitted to purchase shares in a public supply.
However, for the reason that LIC Act has no provision for overseas investments, there’s a want to align the proposed LIC IPO with Sebi norms relating to overseas investor participation.
The Cabinet Committee on Economic Affairs had in July final 12 months cleared divestment of LIC.
Photograph: Danish Siddiqui/Reuters