New Delhi: The Central Government is engaged in the exercise of selling its stake in the Life Insurance Corporation of India. For this, the plan to bring LIC’s IPO is being worked out. The central government can also approve foreign direct investment (FDI) in the country’s largest IPO. After this, any foreign investor can buy a stake in the country’s largest public-sector insurance company. Not only this, after the approval of FDI, large pension funds and insurance companies will be able to bid in IPO.
LIC’s value may reach $216 billion
The central government has a 100% stake in LIC. 74% FDI is allowed in most insurance companies of the country. However, this rule does not apply to LIC, being a special company created by an Act of Parliament. According to sources, the discussion about allowing FDI in LIC is in the early stages. Explain that according to the Reserve Bank of India (RBI), 10 percent or more stake purchase by a foreign person or company is considered as FDI. According to experts, the value of LIC can reach $261 billion after being listed on the stock exchanges.
Book Running Lead Manager will give a presentation in front of the DIPAM
The 16 book-running lead managers for LIC’s IPO will make a presentation in front of the Department of Investment and Public Asset Management (DIPAM). It is expected that this process will be completed within 2 days. At the same time, 16 merchant bankers are trying to get into the list for the sale of LIC shares. Several international banks like Goldman Sachs, JP Morgan, Bank of America Securities have also shown interest in appointing merchant bankers for LIC.
