Govt floats RFP to appoint intermediaries for LIC listing

The government has floated tenders to appoint book-running lead managers, legal advisers, a registrar, and an advertising agency for the IPO of LIC.

LIC'S listing will involve a part-sale of the government’s stake in the insurer, and the raising of fresh equity share capital, said the Department of Investment and Public Asset Management in the request for proposal (RFP), inviting bids from intermediaries.

Part of the offering may be reserved for employees and policyholders, it added.

The government had, in the Budget, announced that 10 per cent of the issue size would be reserved for policyholders. “The potential size of the IPO is expected to be far larger than any precedent in the Indian markets,” it said. In order to achieve a successful IPO, it is the endeavor of the government to attract investment from institutional investors, both domestic and global, in addition to retail investors, it said. Merchant bankers, and registrar and share transfer agents will have to submit their bids by August 5. Legal advisers and the advertising agency are required to submit their bids by August 6.