As per a leading business portal's report, Edelweiss Financial Services Ltd and Deloitte have been selected as pre-IPO transaction advisors for the country's biggest ever IPO by LIC.
The scope of work for these entities shall be advising the govt. on the state of the IPO as well as its timing, working out the optimal capital structure, preparing restated consolidated financial statements for the past three years for LIC and its subsidiaries, structuring the transaction in addition to other aspects.
The Department of Investment and Public Asset Management (Dipam) under the aegis of Ministry of Finance has floated a RFP on June 19, 2020 for appointing engage pre-transaction advisors for partial divestment of the government's equity shareholding in LIC through an IPO.
For the qualification the bidder needed to have a experience of handling at least one IPO of a size of Rs. 5000 crore between April 1, 2017, and March 31, 2020, or should have managed a capital market.The government stake in the LIC stands at 95% as per the RFP.
In the Union Budget speech for 2020-21, Finance Minister Nirmala Sitharaman had said, "Listing of companies on stock exchanges disciplines the company and provides access to financial markets and unlocks its value. It also gives an opportunity for retail investors to participate in the wealth so created. The government now proposes to sell a part of its holding in LIC by way of Initial Public Offer (IPO)."