The Union Cabinet recently approved the disinvestment of equity in LIC and the process is on to appoint merchant bankers to launch the IPO.
The government has for the second time invited bids from law firms to advise it on the mega initial public offering of LIC.
A panel headed by Finance Minister Nirmala Sitharaman will decide on the size of the share sale.
For LIC’s IPO, the center amended the LIC Act of 1956. After the amendment, like any other listed company, the corporation, now governed by the Companies Act and markets regulator Act (post-IPO), has to prepare its quarterly balance sheet with profit or loss figures and make public key developments.
The markets regulator has also amended the rules to allow a company with a valuation of more than ₹1 lakh crore to go for IPO equivalent to 5% of the total value.
LIC has appointed Arijit Basu, former MD of State Bank of India (SBI) and former MD & CEO of SBI Life Insurance, as a consultant to help launch the IPO.