India's biggest LIC IPO
India's biggest LIC IPO
As part of the IPO, the funds raised will be offered to the public and will be used, help the government reach its disinvestment objective
The largest Initial Public Offering in India is set to take place at the Life Insurance Corporation of India. Stock Exchange Board of India approved the offer documents filed by the insurance giant on Sunday.
LIC has a total equity base of 6.32 billion shares, of which 5percent (31.6 crore shares) will be sold under the DRHP.
In the current stock market environment, the Government of India owns 100 percent shares of LIC. If listed, it will most likely become the country's largest company by market capitalization.
The Government of India was advised by Cyril Amarchand Mangaldas on Indian law, and Duane Morris & Selvam Singapore on foreign law aspects of the IPO
Bankers Kotak, Axis, Bank of America, Goldman Sachs and others were represented by Shardul Amarchand Mangaldas and Linklaters Singapore.
Amit Singh, Head of South and Southeast Asia Capital Markets at Linklaters, leads the team in Singapore.
The law firm of Saraf and Partners acted as pre-IPO legal advisor for DIPAM (Department of Investment and Public Asset Management), Government of India for the IPO of LIC (Life Insurance Corporation).
Saraf and Partners was appointed to advice on LIC's IPO, among other matters, on policy and legislation changes.
Partner Akshay Nagpal led the team, which included partners Akshay Jain and Murtaza Zoomkawala and Associate Nikhil Issar.
26 919 CASES of crimes, consumer disputes, civil litigation, and tax disputes have been handled by the LIC:
- Total of 269 criminal cases
- Plus 12,323 consumer disputes
- A total of 14,263 Civil cases (including 60 contempt of court cases)
- Plus 63 tax-related cases
- Additional 1 regulatory case
The IPO will serve as a fully open offer for sale, with the proceeds going completely to the government and helping it reach its goal of disinvestment.
According to the government's Union Budget, disinvestment receipts for the current financial year are expected to be Rs. 78,000 crore.
In accordance with the prospectus, the pricing of the IPO will be determined two days before the offer is opened to the public. In addition, policy holders and employees may receive a discount compared to the price charged to the general public. An investment plan should reserve at least 35 percent of the issue for retail investors.
Life Insurance Corporation of India was established on September 1, 1956, following the passage of the Life Insurance Corporation Act by the Indian Parliament on June 19, 1956.
