LIC IPO: Government invites bids again for legal advisors

On September 2, the government, for the second time sought bids for legal advisors for the listing of Life Insurance Corporation (LIC), which is expected to be the largest public offering in Indian history. In a notice, the Department of Investment and Public Asset Management (DIPAM) said the last date for the bids is September 16.

Insufficient interest was seen during the previous attempt as per the government. “Considering insufficient demand received in the first RFP, it has been decided to issue a fresh RFP on the above subject,” the notice said. DIPAM Secretary Tuhin Kanta Pandey recently said he expects the LIC listing to take place in the current fiscal year (2021-22).

During the Budget speech for FY22, the government announced an ambitious divestment target of Rs 1.75 lakh crore. In which most of this amount is expected to be mopped up through the LIC IPO and privatization of a number of companies including Air and Bharat Petroleum Corporation (BPCL).

Goldman Sachs, JP Morgan, Citigroup, Nomura, Bank of America Securities, JM Financial, SBI Caps, Kotak Mahindra Capital, ICICI Securities, and Axis Capital will manage the IPO. They will form a syndicate and advise DIPAM on the timing and floor price for the IPO.

The merchant bankers will also structure the IPO, conduct due diligence, prepare the draft red herring prospectus, and conduct pre-market surveys and roadshows. Besides merchant bankers, the government has sought bids for appointing a legal adviser, advertising agency, registrar, and share transfer agent for LIC’s public offer.

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