The government has shortlisted Cyril Amarchand Mangadas for legal advice on the upcoming mega IPO of India’s largest insurance company LIC, an official said.
Four law firms – Crawford Bayley, Cyril Amarchand Mangadas, Link Legal, and Shardul Amarchand Mangaldas & Co – gave presentations to the Department of Investment and Public Asset Management (DIPAM) on September 24th.
Following presentations, Cyril Amarchand Mangaldas has been selected as legal advisor for the Initial Public Offering (IPO) of Life Insurance Corporation (LIC), the official told PTI.
DIPAM had published the first RFP on July 15 to submit offers from legal advisors for the mega IPO, and the deadline for submitting bids was August 6.
However, the tender did not receive sufficient response. It then published a new tender on September 2 and set September 16 as the final bid deadline.
The bidders were presented in front of DIPAM on September 24th. Ten commercial bankers have already been selected to lead what is considered the largest IPO in the country’s history. Selected names include Goldman Sachs Group Inc, JPMorgan Chase & Co, ICICI Securities Ltd, Kotak Mahindra Capital Co, JM Financial Ltd, Citigroup Inc, and Nomura Holdings Inc.
The government plans to go public with the initial public offering and subsequent listing of Life Insurance Corporation in the January-March quarter of 2022.
The government is also considering giving foreign investors the opportunity to participate in the country’s largest insurer, LIC.
According to Sebi’s rules, Foreign Portfolio Investors (FPI) are allowed to buy shares as part of a public offering.
However, since the LIC Act does not contain any provisions for foreign investment, the proposed LIC-IPO needs to be adapted to the Sebi standards regarding the participation of foreign investors.
The Cabinet Committee on Economics approved the listing proposal of the Life Insurance Corp of India in July.
The ministerial body known as the Alternative Mechanism on Strategic Disinvestment will now decide on the amount of the shares to be sold by the government.
“The potential scope of the IPO is expected to be far greater than any precedent in the Indian markets,” the department said.
LIC listing will be vital for the government to meet its divestment target of Rs 1.75 lakh crore for 2021-22 (April-March). So far this fiscal year, Rs.9,110 billion has been absorbed through the sale of minority interests in PSU and the sale of SUUTI’s stake in Axis Bank.
(This story was not edited by Business Standard staff and is automatically generated from a syndicated feed.)
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