Department of public asset control (DIPAM) has invited bids from consulting corporations, funding bankers and monetary establishments to advise the federal government at the preparatory processes of the proposed preliminary public be offering (IPO) of Life Insurance Corporation of India (LIC).

LIC’s public be offering is anticipated to be the biggest ever in India, for which the federal government will have interaction two pre-IPO transaction advisors, at the same time as maximum fo the federal government’s divestment plans – together with Air India, BPCL, Concor – were put at the again burner because of Covid 19 pandemic.

The closing date for bids has been stored at July 13, as in keeping with request for proposal (RFP) issued Friday. The bids can be opened on July 14.

The executive “proposes to interact as much as two pre-IPO Transaction Advisor(s) from reputed skilled consulting corporations/ funding bankers/ service provider bankers/ monetary establishments/ banks, independently (no longer within the consortium) for facilitating/helping DIPAM within the preparatory processes resulting in the IPO of LICI,” the federal government mentioned within the RFP.

The guide would be sure preparatory sides of the proposed IPO and would, advise and help the federal government on modalities of IPO, the timing, structuring the transaction, organizing non-deal roadshows, suggesting measures to fetch optimal price and positioning of the minority sale amongst different sides.

The executive has set the enjoy standards for advisors together with dealing with of transactions or IPO of greater than Rs 5,000 crore right through closing 3 years. Bidders will have to have 3 years of enjoy for offering advisory services and products for IPO or strategic disinvestment or strategic sale or M&A actions or personal fairness funding transactions.

“Bidders must have suggested, treated, and finished a minimum of one transaction of IPO of a dimension of Rs 5,000 crore or extra between April 1, 2017 to March 31, 2020 or must have controlled a capital marketplace transaction of Rs 15,000 crore or extra right through the duration,” the RFP mentioned.

The executive is having a look at list the rustic’s biggest existence insurer on home bourses within the January-March quarter of present fiscal. The IPO of LIC would give a contribution an enormous chew to the federal government’s budgeted disinvestment goal of Rs 2.10 lakh crore this fiscal.

In the 2020-21 Budget, Finance Minister Nirmala Sitharaman had introduced to promote part of the federal government’s retaining in LIC by the use of public list. LIC is totally owned by means of the federal government.

“Listing of companies on stock exchanges disciplines the company and provides access to financial markets and unlocks its value. It also gives an opportunity for retail investors to participate in the wealth so created,” she had mentioned.

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