The government has selected Cyril Amarchand Mangaldas to provide legal advice on the upcoming mega-IPO of India’s largest insurance company LIC, an official said.
Four law firms – Crawford Bayley, Cyril Amarchand Mangaldas, Link Legal and Shardul Amarchand Mangaldas & Co – had made presentations to the Department of Investment and Public Asset Management (DIPAM) on September 24.
After the presentations, Cyril Amarchand Mangaldas was chosen as legal advisor for the Initial Public Offering (IPO) of Life Insurance Corporation (LIC), the official told PTI.
DIPAM had launched a first tender on July 15 inviting legal advisers to bid for the mega IPO and the last tender date was August 6.
However, the RFP did not receive a sufficient response. Subsequently, on September 2, it issued a new request for proposals and set September 16 as the deadline for submissions.
The bidders appeared before DIPAM on September 24th. Ten investment bankers have already been selected to manage the IPO, billed as the largest 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 aims to proceed with the IPO and subsequent listing of Life Insurance Corporation on the stock exchanges during the quarter from January to March 2022.
The government is also considering allowing foreign investors to take stakes in the country’s largest insurer, LIC.
In accordance with Sebi rules, foreign portfolio investors (REITs) are allowed to buy shares through a public offering.
However, since the LIC Law does not contain any provisions regarding foreign investment, it is necessary to align the proposed LIC IPO with the Sebi standards regarding the participation of foreign investors.
The Cabinet Committee on Economic Affairs cleared the initial public offering proposal of Life Insurance Corp of India in July.
The ministerial panel known as the Alternative Mechanism on Strategic Divestment will now decide on the amount of stake to be ceded by the government.
“The potential size of the IPO is expected to be much larger than any precedent in Indian markets,” the department said.
The list of LICs will be crucial 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 crore has been paid off by the sale of minority stakes in PSU and the sale of SUUTI’s stake in Axis Bank.
(This story was not edited by Business Standard staff and is auto-generated from a syndicated feed.)