LIC IPO News: Government likely to invite bids from merchant bankers in July Month

The government is likely to invite bids from merchant bankers later in July for the initial public offer of the state-owned insurance giant Life Insurance Corporation as part of its disinvestment push, according to PTI.

The Department of Public Asset Management (DIPAM), earlier in January, had appointed actuarial firm Milliman Advisors LLP to assess the embedded value of LIC as it heads for public listing —which is set to be the biggest IPO in India so far. Embedded value refers to the net asset value and present value of future profits of a life insurance company.

The report quoting unnamed official sources added the actuary is likely to work out the embedded value of LIC in the next couple of weeks and the Budget amendment to the LIC Act have also been notified. The government is likely to invite bids for the appointment of merchant bankers in the next couple of weeks and regulatory approvals are likely to be received by November end.

According to the report, up to 10% of LIC IPO would be reserve for policyholders. Also, the LIC Amendment Act was made part of the Finance Act, paving the path for the IPO. Deloitte and SBI Caps have been appointed as pre-IPO transaction advisors.