New Delhi: Starting the process for LIC disinvestment, the government has invited offers from trader bankers and legal counsel for advising him on the proposed initial Mega Public Offering.
Inviting offers from Merchant bankers, Dipam said the potential size IPO is expected to be far greater than the precedent in the Indian market.
“To achieve a successful IPO, it is an Indonesian government’s efforts to attract investment from institutional investors, both domestically and globally, in addition to retail investors,” he said.
The Department of Investment and Management of Public Assets (Depam) will appoint 10 trader bankers and one legal company to help and advise the sale of shares.
The last date for bidding by Banker Merchant is August 5 and the law firm is August 6.
Sales of government shares in insurance companies and to increase the stock capital of fresh equity for LIC, through the IPO.
“The percentage of deposited equity that will be issued / divestment as part of the IPO will be determined based on the capital after the Lici problem …
Part of the public offer can be reserved for employees and policy holders,” said Dipam.
The proposal is invited from registered Merchant bankers the registered Merchant has a valid certificate; either singly or as a consortium, with experience and expertise in public offering in the capital market; To act as a book that runs the main manager and to help and advise the government in the process, he added.
Banker Merchants will be asked to carry out thorough testing activities and set up DRHP / RHP / Prospektus, regulate the road showing the domestic and international markets and advising the government at the time and modality of the IPO.
DIPA has also invited offers from registrars and shares transfer agencies and advertising agencies for IPOs.
Last week, the Union Cabinet approved the IPO and modalities such as the size of the problem, price and time would be determined by the panel led by Minister of Finance Nirmala Sitharaman.
The Milliman Advisors LLP India Actuaria company in January was appointed to assess the value of LIC embedded ahead of the IPO, which was mentioned as the largest public problem in the history of the Indian company.
The government hopes to be an initial LIC offer at the current fiscal end.
Deloitte and SBI caps have been appointed as the Pre-IPO transaction advisor.
LIC lists will be very important for the government to meet the consensible target.
The government aims to mudge 1.75 lakh crore at current fiscal of sales and privatization of minority stakes.
From Rs 1.75 lakh Crore, Rs 1 Lakh Crore is coming from selling government bets at public sector banks and financial institutions.
The rest of RS 75,000 Crore will come as a CPSE disinvestment receipt.
So far, in the current fiscal, the government has muddled more than RS 7,646 Crore from the sale of Suti shares on the bank’s axis and OFS of NMDC.