Over August 2021, bankers interested in managing LIC’s IPO will give presentations to the Department of Investment and Public Asset Management (DIPAM). With the current government pushing ahead with the selling of stock in the Life Insurance Corporation of India (LIC), as many as 16 merchant banks have expressed interest in handling the much-anticipated IPO. The presentation will be given during the following two days, August 24-25. The LIC share sale procedure is overseen by this department, which is subordinate to the Indian Ministry of Finance.
LIC’s IPO, which is expected to be the nation’s largest stock offering, is critical to the central government’s privatization aim after COVID-19 put a wrench in the works last year. In this fiscal year, the administration plans to sell its stake in the life insurance behemoth. For the fiscal year 2021-22, the government has set a privatization goal of USD 24 Billion. It has raised USD 114 Million already this fiscal year through minor share sales in PSUs and the selling of SUUTI’s interest in Axis Bank. Seven foreign lenders are among the bankers interested in managing this IPO. On 17th Aug 2021, bankers will deliver presentations to DIPAM. BNP Paribas, DSP Merrill Lynch, now known as BofA Securities, Citigroup Global Markets India, Goldman Sachs India Securities, JP Morgan India, HSBC Securities and Capital Markets (India), and Nomura Financial Advisory and Securities are among the banks that will be presenting. 9 domestic bankers will be presenting to DIPAM on Wednesday. Axis Capital Ltd., HDFC Bank, DAM Capital Advisors, ICICI Securities, as well as IIFL Securities would be among the companies involved. Kotak Mahindra Capital, JM Financial Ltd., SBI Capital Market, as well as YES Securities India Ltd., will also be presenting on the very same day.
DIPAM had requested merchant bankers keen on handling this IPO to submit applications on July 15. This inaugural share offering will be managed by a team of up to 10 Book Running Lead Managers (BRLMs). There was a deadline for proposals of August 5. CCEA authorized LIC’s initial public offering plan last month. After this, the government’s Alternative Mechanism on Strategic Disinvestment will determine the number of shares to be sold. There is no precedence in Indian markets for the scale of the prospective IPO. In preparation for the first public offering, the ministry had commissioned actuarial company Milliman Advisors LLP India to analyze LIC’s inherent value. As pre-IPO transaction advisers, Deloitte and SBI Caps have been selected. Amit Agarwal, Additional Secretary at the Finance Ministry, stated last week that post this IPO, roughly 60% of the insurance company will belong to the listed businesses. Data of the insurance industry in India is widely available on various analytical research platforms.