LIC IPO | Govt selects 10 banks including Goldman Sachs, Citigroup to manage the share sale | Avaneesh Parasar
The government expects to raise Rs 80,000 crore-90,000 crore ($11 bln-12.2 bln) from its stake sale in Life Insurance Corp (LIC), as part of its plans to raise Rs 1.75 lakh crore from a privatization programme in the current fiscal year ending in March 2022. Avaneesh Parasar
The government has selected 10 investment banks including Goldman Sachs, Citigroup, and SBI Capital Market to handle the initial public offering of Life Insurance Corp of India, two government sources said, in what is set to be the country’s biggest-ever IPO.
The government expects to raise Rs 80,000 crore-90,000 crore ($11 bln-12.2 bln) from its stake sale in Life Insurance Corp (LIC), as part of its plans to raise Rs 1.75 lakh crore from a privatisation programme in the current fiscal year ending in March 2022.
A ministerial panel, called the Alternative Mechanism on strategic Divestment, is expected to decide soon on the size of the stake to be sold. It could be around 10 percent, sold in two tranches, the two government sources said.
LIC, India’s biggest insurance company with assets of over 34 trillion rupees ($461.4 billion), has a subsidiary in Singapore and joint ventures in Bahrain, Kenya, Sri Lanka, Nepal, Saudi Arabia, and Bangladesh.
“The potential size of the IPO is expected to be far larger than any precedent in Indian markets,” one of the sources said, adding that roadshows would be held in coming months in all major global financial centres to attract investors.
