LIC IPO - Government appoints Investment bankers

LIC IPO Investment bankers

by 5paisa Research Team Last Updated: Sep 09, 2021 - 05:48 pm 53.4k Views
Listen icon

The government has taken an important step towards the LIC IPO. On 08 September, the DIPAM secretary, Tuhin Pandey, announced the list of investment bankers managing the LIC IPO. A total of 16 merchant bankers had made presentations on 15-July to the government for managing the LIC IPO and out of them 10 have been shortlisted for the job. The government is yet to announce specifics of BRLMs and advisors to the issue.

The Department of Investment and Public Asset management (DIPAM) has appointed 5 global investment banks and 5 Indian investment banks.

The 5 global investment banks include

     1. Goldman Sachs

     2.Citigroup

     3. JP Morgan

     4. BOFA Securities

     5. Nomura

 

The 5 Indian investment bankers to the issue include:

   1.  SBI Caps

   2.  JM Financial

   3.  Axis Capital

   4.  ICICI Securities

   5.  Kotak Mahindra Capital.

 

Apart from appointing the investment bankers, DIPAM has invited applications for appointment of legal advisors to the issue. KFintech Private Limited , formerly Karvy Computershare, has been appointed as the registrar to the issue. Milliman Advisors LLP is already acting as the actuarial advisors and they are in the process of arriving at the embedded value of LIC. The issue is slated in the Mar-22 quarter.

While FDI up to 74% in life insurance is permitted under the automatic route, that is not applicable to LIC as it is governed by the LIC Act. The IPO is also likely to permit foreign investors to invest up to 20% via the IPO route. The Cabinet Committee on Economic Affairs has already cleared the issue.

Read: New rules for Insurance Sector

The success of the LIC IPO is crucial to the success of the government’s Rs.175,000 crore disinvestment target in FY22. Till date, divestments have only collected Rs.8,368 crore this fiscal. The government may sell 5% to 10% in LIC and the size of the IPO could vary from Rs.75,000 crore to Rs.100,000 crore and will be the biggest in Indian IPO history.

 

LIO IPO Storyline:

1.  Did the LIC IPO just get the Government Stamp of Approval

2. LIC IPO gets once step closer to becoming reality

3. Life Insurance Corporation LIC - IPO Update

4. LIC may split its proposed IPO into 2 tranches
 

How do you rate this blog?

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

oda_gif_reasons_colorful

About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.

Open Free Demat Account
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest Blogs
Best Pharma Penny Stocks to Buy in India 2024

In the evolving nature of the Indian pharmaceutical sector, spotting viable investment prospects needs extensive study and knowledge. As we traverse the ever-changing world of financial markets in 2024, this article digs into the world of pharma penny stocks in India, hoping to unearth hidden gems that might provide significant returns to astute investors.

Sadhav Shipping IPO Allotment Status

Quick take on Sadhav Shipping IPO The stock of Sadhav Shipping Ltd has a face value of ₹10 per share and it is a fixed price issue. The price for the issue is set at ₹95 per share. Being a fixed price issue, there is no question of price discovery involved in the process. The IPO of Sadhav Shipping Ltd has only a fresh issue component and no offer for sale (OFS) portion.

How To Get Out Of Debt Trap?

Someone once said, “The only man who sticks closer to you in adversity than a friend is a creditor.” A debt trap can be one of the worst situations that a person can find themselves into.