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16 investment bankers in the race to manage the IPO of LIC

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Cabinet Committee on Economic Affairs cleared LIC’s initial public offering proposal last month

No less than 16 investment bankers are in the race to manage the Initial Public Offering (IPO) of Life Insurance Corporation of India (LIC) – billed as the largest sale of shares in the country’s history.

These bankers will make a presentation to the Department of Investment and Management of Public Assets (DIPAM) spread over 2 days, on August 24 and 25.

Seven international bankers, including BNP Paribas, Citigroup Global Markets India and DSP Merrill Lynch Ltd. (now known as BofA Securities), will be making presentations on August 24, in accordance with a circular from DIPAM.

Other bankers who will be making presentations on August 24 are: Goldman Sachs (India) Securities, HSBC Securities and Capital Markets (India), JP Morgan India, Nomura Financial Advisory and Securities (India).

On August 25, nine national bankers will make a presentation to officials of DIPAM, which manages the sale of government shares in LIC. These bankers include Axis Capital Ltd., DAM Capital Advisors Ltd., HDFC Bank Ltd., ICICI Securities Ltd., IIFL Securities Ltd., JM Financial Ltd., Kotak Mahindra Capital Co Ltd., SBI Capital Market Ltd. and Yes Securities India Ltd.

On July 15, DIPAM solicited the candidacy of investment bankers for the IPO of LIC, seeking to appoint up to 10 Book Running Lead Managers to manage the initial offer as a team. The last tender date was August 5.

The Cabinet Committee on Economic Affairs last month cleared Life Insurance Corp.’s initial public offering proposal. of India.

The ministerial panel known as the Alternative Mechanism on Strategic Divestment will now decide on the amount of stake to be ceded by the government.

“The potential size of the IPO is expected to be much larger than any precedent in Indian markets,” the department said.

The government previously appointed actuary firm Milliman Advisors LLP India to assess LIC’s intrinsic value prior to the initial public offering. Deloitte and SBI Caps have been appointed as pre-IPO transaction advisers.

The list of LICs will be crucial for the government to meet its divestment target of ₹ 1.75 lakh crores for 2021-22 (April-March).

So far this fiscal year, 8,368 crore has been absorbed by the sale of minority stakes in PSU and the sale of SUUTI’s stake in Axis Bank.


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