Finance Minister Nirmala Sitharaman evaluated the development of the country’s largest insurer LIC’s planned disinvestment on Friday. The Life Insurance Corporation (LIC) is slated to launch its initial public offering (IPO) in March, which is believed to be the biggest in the history of the country.
‘Union Finance Minister Smt. @nsitharaman reviewed the progress of the LIC IPO in New Delhi today in presence of @SecyDIPAM; Secretary @DFS_India and Senior Officials @LICIndiaForever and @FinMinIndia via VC’, the FM tweeted.
The LIC IPO is critical for reaching the current fiscal year’ disinvestment objective of Rs 1.75 lakh crore (April-March). So far this fiscal year, PSU disinvestment has netted Rs 9,330 crore.
The government hired ten merchant bankers to oversee the massive IPO of LIC, in September last year, including Goldman Sachs (India) Securities Pvt Ltd, Citigroup Global Markets India Pvt Ltd, and Nomura Financial Advisory and Securities (India) Pvt Ltd.
SBI Capital Markets Ltd, JM Financial Ltd, Axis Capital Ltd, BofA Securities, J.P. Morgan India Pvt Ltd, ICICI Securities Ltd, and Kotak Mahindra Capital Co Ltd are among the other shortlisted lenders. The legal advisor of the IPO has been named Cyril Amarchand Mangaldas.
The government is currently considering how much of its ownership in the company will be sold in the IPO. It is also considering allowing foreign investors to purchase LIC shares.
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Foreign portfolio investors (FPIs) are allowed to acquire shares in a public offering under SEBI guidelines. However, as the LIC Act makes no provision for international investments, the planned LIC IPO must comply with Sebi rules on foreign investor involvement.
The disinvestment of LIC was approved by the Cabinet Committee on Economic Affairs in July last year.
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