LIC IPO: Government to invite tenders from merchant banks
New Delhi: The government is likely to call for tenders from merchant banks this month to manage LIC’s disinvestment process. If that happens, LIC’s IPO is likely to hit the market before January.
The Department of Investment and Public Asset Management (DIPAM) hired Milliman Advisors LLP India in January to ask them to determine the value of LIC before launching an IPO. LIC’s IPO is likely to be the largest in the history of Indian companies.
The Central Government has issued a notification amending the Life Insurance Corporation (LIC) Act, 1956, which came into force on Wednesday.
The amendment paves the way for LIC to enter the IPO market and the policyholder will get a stake in the IPO, the notification said. The amendment would make it mandatory to register in the stock market and appoint an independent director to the board of directors. In March last year, Parliament amended the LIC Act, 1956 to allow LIC to raise Rs 250 billion. To meet the disinvestment target of Rs 1.75 lakh crore (April-March) for 2021-22, the government needs to register LIC.