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LIC IPO to hit markets by March; draft papers to be filed with Sebi by this month-end

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NEW DELHI: The federal government will launch the mega public provide of LIC by March and file draft papers with market regulator Sebi by the tip of this month, an official stated.
Finance minister Nirmala Sitharaman had final week reviewed the progress of the preliminary public providing (IPO) of Life Insurance coverage Company (LIC) in a gathering with prime officers of the ministry.
The official stated the September 2021 quarter financials of LIC are getting finalised in addition to fund bifurcation is in progress.
“We are hopeful of filing the DRHP (draft red-herring prospectus) with Sebi by month-end or early-February. One thing is for sure that IPO will come before the end of the current fiscal,” the official advised PTI.
LIC IPO is essential for assembly the Rs 1.75-lakh crore disinvestment goal set for the present monetary yr ended March 2022. Up to now this fiscal, Rs 9,330 crore has been mopped up by way of PSU disinvestment.
The federal government in September final yr appointed 10 service provider bankers, together with Goldman Sachs (India) Securities Pvt Ltd, Citigroup World Markets India Pvt Ltd and Nomura Monetary Advisory and Securities (India) Pvt Ltd to handle the mega preliminary public providing of nation’s largest insurer LIC.
Different chosen bankers embody SBI Capital Market Ltd, JM Monetary Ltd, Axis Capital Ltd, BofA Securities, JPMorgan India Pvt Ltd, ICICI Securities Ltd, and Kotak Mahindra Capital Co Ltd.
Cyril Amarchand Mangaldas has been appointed as authorized advisor for the IPO.
The federal government is within the technique of deciding the quantum of presidency stake that can be divested by way of the IPO.
The federal government can also be mulling permitting international traders to select up stakes within the nation’s largest insurer LIC.
In keeping with Sebi guidelines, international portfolio traders (FPI) are permitted to purchase shares in a public provide.
Nonetheless, for the reason that LIC Act has no provision for international investments, there’s a must align the proposed LIC IPO with Sebi norms relating to international investor participation.
The Cupboard Committee on Financial Affairs had in July final yr cleared disinvestment of LIC.

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