New Delhi: The government will launch a Mega LIC general offer in March and the draft file paper with a market regulator at the end of this month, an official said.
Minister of Finance Nirmala Sitharaman has last week reviewing the progress of the initial public offering (IPO) Corporation (LIC) in a meeting with high-ranking ministry officials.
The official said the September 2021 quarterfaction will be resolved and the funds were underway.
“We hope to submit DRHP (draft red-herring prospectus) with the end of the month or early February.
One thing is certain that the IPO will come before the current fiscal end,” said PTI official.
LIC IPO is very important to meet the 1.75-Lakh Rs Disinvestment Crore target set for the current financial year which ended March 2022.
So far this fiscal, Rs 9,330 Crore has been installed through PSU disinvestment.
The government in September took 10 trader bankers, including Goldman Sachs (India) Securities Pvt Ltd, Citigroup Global Markets India Pvt Ltd and Nomura Financial Advisory and Securities (India) PVT Ltd to manage Mega Public Offering the largest country public offering in this country .
Other selected bankers include SBI Capital Market Ltd., JM Financial Ltd., Axis Capital Ltd, Bofa Securities, JPMorgan India Pvt Ltd, ICICI Securities Ltd, and Mahindra Capital Box Co.
Ltd.
Cyril Amarchand Mangaldas has been appointed as a legal counsel for the IPO.
The government is in the process of determining the quantum of government pegs that will divest through the IPO.
The government also contemplates that allows foreign investors to take bets in the largest insurance company in the country.
According to Sebi rules, foreign portfolio investors (FPI) are permitted to buy shares in public offers.
However, since LIC Law has no provisions for foreign investment, there is a need to harmonize the LIC IPO proposed with SEBI norms regarding foreign investor participation.
The Cabinet Committee in Economic Affairs has been in July, then cleaning was resisted by LIC.
LIC IPO to hit the market by Mar; Draft papers to be submitted by Jan-End
