India is seeking advisers to help state owned giant life insurer Life Insurance Corporation of India (LIC) prepare for an initial public offering (IPO), reported Bloomberg.
The advisers will help evaluate the capital structure of India’s biggest insurer as well as help the company in preparing its financial statements, according to a tender document on the government’s website.The criterion for placing a bid is that the bidder should have advised, handled, and completed at least one IPO of a size of at least INR50bn ($656m) between 1 April 2017 and 31 March 2020. The last date for bids is 13 July. Or it should have managed a capital market transaction of INR150bn or more during the period.
The government is looking at listing the country’s largest life insurer on domestic bourses in the January-March quarter of current financial year. The IPO, expected to be the largest ever in India, is part of the government’s divestment plans for state-backed companies.
On 1 February this year, the government had proposed the LIC IPO. However, not much headway has been made due to the COVID-19 pandemic.
LIC has the lion’s share in India’s insurance business with close to 70% of first-year life insurance premiums.