New Delhi: The central government is gearing up for the high-profile LIC IPO. Bids for book running lead managers (BRLM), legal adviser, and registrar and share transfer agent (RTA) for the mega initial public offering (IPO) of Life Insurance Corporation of India have been invited by the Centre. Apart from this, the Department of Investment and Public Asset Management (DIPAM) has also invited bids for an advertising agency, as per an IANS report.
LIC IPO Latest News, LIC IPO Details
- The bid submission for BRLMs and RTA starts on July 15 and ends on August 5, as per an IANS report.
- The bid submission for legal adviser and advertising agency starts on July 15, but ends on August 6, the IANS report says.
- The tender documents published by DIPAM on Thursday said that the listing of shares of the LIC on stock exchanges would entail part-sale of government’s stake in LIC and to raise fresh equity share capital for LIC, through a prospectus based IPO in the domestic market as per SEBI Rules and Regulations, the IANS reported.
- Earlier in July, the Cabinet Committee of Economic Affairs (CCEA) gave its in-principle approval to the IPO, IANS reported.
- The government expects to bring the IPO around Diwali this year, the IANS report says.
- According to Chief Economic Adviser (CEA) K.V. Subramanian, the LIC IPO may fetch the government around Rs 1 lakh crore.
- Post the Union Budget 2021, the government has taken several legislative and executive steps to pave way for the mega IPO.
- As per the amendments proposed under the Finance Bill 2021, the authorised share capital of LIC shall be Rs 25,000 crore, divided into 2,500 crore shares of Rs 10 each.
- Capital market regulator SEBI has also eased the minimum public offer norms in a bid to pave the way for the LIC IPO.
- In February, the board of the Securities and Exchange Board of India (SEBI) has decided recommend changes in regulations, and for issuers with post issue market capital exceeding Rs 1 lakh crore, the requirement of minimum public offering (MPO) will be reduced from 10 per cent of post issue market capital to Rs 10,000 crore along with 5 per cent of the incremental amount beyond Rs 1 lakh crore.
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