LIC IPO: Government Sets ‘Strict Timelines’; Details You Need to Know

LIC IPO: Once the draft red herring prospectus (DRHP) is filed, merchant bankers will hold global and domestic road shows for investors by January, the official said, PTI reported.

Written by: India.com Business Desk Edited by: Debjit Sinha

Published: October 4, 2021, 12:56 PM IST

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https://www.india.com/business/lic-ipo-date-price-size-valuation-lic-of-india-latest-news-5020376/ Copy

(FILE IMAGE)

New Delhi: Life Insurance Corporation of India (LIC) is aiming to file draft red herring prospectus (DRHP) for the much-awaited Initial Public Offering (IPO) with the Securities and Exchange Board of India (SEBI) by next month, PTI has reported quoting the finance ministry official. “We target to bring the IPO within this fiscal and we have set strict timelines. The DRHP would be filed by November,” the official told PTI.

LIC IPO Date, Valuation – Latest News

• The government is aiming to list the insurance behemoth within the current financial year ending March. The ministry is in the process of estimating the embedded value of the life insurer and once that is done the ministerial panel on disinvestment will decide on the government stake that will be divested through IPO, the official was quoted as saying by PTI.
• To manage the mega initial public offering of country’s largest insurer LIC, the government last month appointed 10 merchant bankers, including Goldman Sachs (India) Securities Pvt Ltd, Citigroup Global Markets India Pvt Ltd and Nomura Financial Advisory and Securities (India) Pvt Ltd. Other selected bankers include SBI Capital Market Ltd, JM Financial Ltd, Axis Capital Ltd, BofA Securities, J P Morgan India Pvt Ltd, ICICI Securities Ltd, and Kotak Mahindra Capital Co Ltd, PTI reported.
• Once the draft red herring prospectus (DRHP) is filed, merchant bankers will hold global and domestic road shows for investors by January, the official said.
• Cyril Amarchand Mangaldas has been appointed as legal advisor for the IPO. The government has also appointed actuarial firm Milliman Advisors LLP India to compute the embedded value of LIC ahead of the initial public offering, the PTI report says.