BackLIC IPO: Govt invites Request for Proposal to hire legal adviser, registrars and advertising agency
The government expects to come out with the LIC IPO by the end of current fiscalUp to 10% of the LIC IPO issue size would be reserved for policyholders
PremiumThe central government on Thursday invited Request for Proposal to hire legal adviser, book running lead managers, registrars and advertising agency. The government said the size of the LIC IPO will be far larger than any previous issue.
According to Department of Investment and Public Asset Management (DIPAM), Request for Proposal (RFP) can be be downloaded from CPPP site eprocure.gov.in/eprocure/app.
The bid submission end date is August 5, and the bid opening date is August 6.
"Not more than one bid shall be submitted by one bidder or bidders having business relationship," as per the official circular.
This week the Cabinet approved an initial public offering of Life Insurance Corporation (LIC).
The government expects to come out with the LIC IPO by the end of current fiscal. Up to 10% of the LIC IPO issue size would be reserved for policyholders.
The government has already brought in the required legislative amendments in the LIC Act for the proposed IPO.
Deloitte and SBI Caps have been appointed as pre-IPO transaction advisors.
The listing of LIC will be crucial for the government to meet its disinvestment target. The government aims to mop up ₹1.75 lakh crore in the current fiscal from minority stake sales and privatisation.
Of the ₹1.75 lakh crore, ₹1 lakh crore is to come from selling the government's stakes in public sector banks and financial institutions. The remaining ₹75,000 crore would come as CPSE disinvestment receipts.
So far in the current fiscal, the government has mopped up ₹3,994 crore from sale of SUUTI stake in Axis Bank. Besides, around ₹3,700 crore has come in from the share sale in NMDC.
In her Budget speech in February this year, Finance Minister Nirmala Sitharaman said the IPO of LIC would be floated in 2021-22.
LIC has three branches outside India in UK, Fiji and Mauritius, a wholly owned subsidiary in Singapore and Joint Ventures in Bahrain, Kenya, Sri Lanka, Nepal, Saudi Arabia and Bangladesh. Its subsidiaries in India include LIC Pension Fund Ltd and LIC Cards Services Ltd. Its associates include IDBI Bank Ltd., LIC Mutual Fund and LIC Housing Finance Limited.
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