JP MORGAN, GOLDMAN SACHS, 14 OTHERS IN RACE TO MANAGE LIC IPO

Sixteen merchant banks, including JP Morgan India, Goldman Sachs (India) Securities, and Citigroup Global Markets India, are in the fray to become the book running lead managers for the initial public offering of Life Insurance Corporation of India. These merchant banks will have to make a presentation before the Department of Investment and Public Asset Management on August 24-25.

Sixteen merchant banks are in the fray to become the book running lead managers (BRLM) for the initial public offering (IPO) of Life Insurance Corporation of India (LIC). These merchant banks will have to make a presentation before the Department of Investment and Public Asset Management (DIPAM) on August 24-25.

The shortlisted banks are BNP Paribas, Citigroup Global Markets India, Bofa Securities, Goldman Sachs (India) Securities, HSBC Securities and Capital Markets (India), JP Morgan India, Nomura Financial Advisory and Securities (India), Axis Capital, DAM Capital Advisors, HDFC Bank, ICICI Securities, IIFL Securities, JM Financial, Kotak Mahindra Capital, SBI Capital Market, and Yes Securities India.

Financial bids placed by these bankers will be opened after all the presentations are made.

The government is looking to appoint up to 10 BRLMS with experience in IPOS, and will have to form a team. The BRLMS, in consultation with the government, will form a syndicate as required under the Securities and Exchange Board of India (Sebi) guidelines. The government also has the option of appointing additional syndicate members if necessary.

The merchant bankers will be required to structure the IPO in accordance with Sebi’s prevailing framework. They will also be required to undertake due diligence, prepare the draft red herring prospectus (DRHP), advise the government on regulatory norms, and assist in securing approval and exemptions, wherever necessary, from regulatory agencies like Sebi, the Reserve Bank of India (RBI) and Insurance and Regulatory Development Authority of India (Irdai) as well as stock exchanges.

The listing of LIC’S shares on exchanges would involve partsale of the government’s stake in the insurer, and to raise fresh equity share capital. A part of the public offering may be reserved for employees and policyholders of LIC.