India’s Largest Insurance Company LIC can file Draft Paper for Its IPO with SEBI Next Month. According to an official of the Finance Ministry, LIC IPO will be the largest IPO in the History of India. LIC will file its DHRP with SEBI in the Month of November. Official Said that LIC IPO will come in this Financial Year. Finance Ministry is Strict towards the IPO of LIC.
Last Month Government Appoints 10 Merchant Bankers for the LIC IPO.
To Manage the Mega IPO of LIC, Government Appoints 10 Merchant Bankers. These Merchant Bankers are Goldman Sachs (India) Securities Pvt Ltd, Citigroup Global Markets India Pvt Ltd, Nomura Financial Advisory and Securities (India) Pvt Ltd, SBI Capital Market Ltd, JM Financial Ltd, Axis Capital Ltd, BofA Securities, JP Morgan India Pvt Ltd, ICICI Securities Ltd, Kotak Mahindra Capital Co Ltd
The government is Planning to List LIC till March 2022
Government is Aiming to List LIC in the Current Financial Year. Currently, Finance Ministry is Calculating the Embedded Value of LIC. After This Embedded value Gets Calculated Penal of Minsters will Take Decision that How Much Stake Government can Dilute in this IPO. The government has Appointed Milliman Advisors LLP India for the Calculation of Embedded Value.
Foreign Investors May Invest in LIC IPO
The government is Planning to Give Foreign Investors a Chance to Invest in LIC IPO. According to Current SEBI Rules Foreign Portfolio Investors (FPI) cab Invest in IPO. But In LIC Regulations there is No Rule for Foreign Investment. So if Government wants that Foreign Investment in LIC IPO then SEBI Norms must be Modified.
LIC will Play an Important Role in Achieving the Government Disinvestment Target of 1.75 Lakh Crore in FY2021-22
To Achieve the Government Target of 1.75 Lakh Crore from Disinvestment Listing of LIC will play an important role. In The Current Financial Year Government has Collected 9,110 Crore From Disinvestment. This Amount Comes from the Selling of Minor Government Stakes in PSUs and Selling SUUTI in Axis Bank.