LIC IPO, Government Has Chosen Ten Banks To Oversee The Share Sale, Including Goldman Sachs And Citigroup

The government aims to collect Rs 80,000 crore-90,000 crore ($11 billion-12.2 billion) through the sale of its share in Life Insurance Corporation of India (LIC) as part of its target to raise Rs 1.75 lakh crore from a privatisation programme in the current fiscal year, which ends in March 2022.

LIC IPO, Government Has Chosen Ten Banks To Oversee The Share Sale, Including Goldman Sachs And Citigroup
LIC IPO, Government Has Chosen Ten Banks To Oversee The Share Sale, Including Goldman Sachs And Citigroup

According to two government sources, the government has chosen ten investment banks, including Goldman Sachs, Citigroup, and SBI Capital Market, to handle the Life Insurance Corp of India's initial public offering, which is expected to be the country's largest-ever IPO.

The government aims to collect Rs 80,000 crore-90,000 crore ($11 billion-12.2 billion) through the sale of its share in Life Insurance Corporation of India (LIC) as part of its target to raise Rs 1.75 lakh crore from a privatisation programme in the current fiscal year, which ends in March 2022. 

The Alternative Mechanism on Strategic Divestment, a ministerial body, is anticipated to decide on the size of the share to be sold soon. According to the two government sources, it may be about 10% and sold in two tranches. With assets of approximately 34 trillion rupees ($461.4 billion), LIC is India's largest insurance business, with subsidiaries in Singapore and joint ventures in Bahrain, Kenya, Sri Lanka, Nepal, Saudi Arabia, and Bangladesh.

"The potential size of the IPO is expected to be far larger than any precedent in Indian markets," one of the sources said, adding that roadshows would be held in coming months in all major global financial centres to attract investors.

The IPO was handled by sixteen institutions, including seven global banks and nine domestic banks. JM Financial Ltd, Axis Capital, Nomura, BofA Securities, J.P. Morgan India Pvt Ltd, ICICI Securities, and Kotak Mahindra are among the other lenders chosen, according to the person, who did not want to be identified because he was not authorised to speak to the media. 

JP Morgan, Citigroup, BofA, and Goldman Sachs all declined to comment, while Nomura, JM Finance, Axis, Kotak, and others could not be reached for comment right away. A representative for the finance ministry was not immediately available for comment.

The government would make all efforts to attract retail investors and employees to invest in the company, one of the sources said.