The biggest news on LIC’s IPO: Government selected 10 banks, these banks including SBI Caps and Kotak Mahindra are involved

Out of these 7 global and 9 domestic i.e. a total of 16 banks/finance companies were involved in this race. DIPAM had invited applications for the appointment of merchant bankers for LIC’s IPO on July 15.

LIC IPO Big News Today: The central government has selected 10 merchant banks to manage LIC’s IPO. The IPO of LIC, which is called the biggest share sale in the history of the country, will be managed through these selected 10 banks. According to the report of ET, news agency Reuters has given this information quoting government sources.

Let us tell you that 16 merchant bankers were involved in this race. All the banks gave their presentations before the Department of Investment and Public Asset Management (DIPAM) on August 24 and 25. On the basis of presentation and other qualifications, 10 out of 16 banks were selected.

Which banks got selected?
According to a Reuters report, the selected 10 banks include Goldman Sachs, Citigroup, Kotak Mahindra and SBI Caps (Goldman Sachs, Citigroup, Kotak Mahindra and SBI Caps). Apart from these, JM Financial Ltd, Axis Capital, Nomura, BofA Securities, JP Morgan India Pvt Ltd and ICICI Securities Bank (JM Financial Ltd, Axis Capital, Nomura, BofA Securities, JP Morgan India Pvt Ltd, ICICI Securities) are part of LIC’s IPO management. have been selected for.

Let us inform that out of these 7 global and 9 domestic i.e. a total of 16 banks / finance companies were involved in this race. DIPAM had invited applications for the appointment of merchant bankers for LIC’s IPO on July 15. The last date for submission of proposals was August 5. On behalf of all the 16 applicant banks, a presentation was given to the officials of DIPAM (Department of Investment and Public Asset Management), on the basis of which the banks have been selected.

Banks gave presentation on Tuesday and Wednesday
According to the DIPAM circular, seven international bankers including BNP Paribas, Citigroup Global Markets India and DSP Merrill Lynch (now BofA Securities) made presentations on Tuesday. Other bankers included Goldman Sachs (India) Securities, HSBC Securities and Capital Markets (India), JP Morgan India, Nomura Financial Advisory and Securities (India).

At the same time, on Wednesday, a presentation was given by nine domestic banks to the officials of DIPAM. These included Axis Capital Limited, DAM Capital Advisors, HDFC Bank Limited, ICICI Securities Limited, IIFL Securities Limited, JM Financial Limited, Kotak Mahindra Capital Company Limited, SBI Capital Markets Limited and Yes Securities India Limited.

According to reports, the central government is simultaneously doing strategic disinvestment in companies like Air India and BPCL. The central government is also looking to complete at least three public sector disinvestment transactions before the launch of LIC’s IPO.

Considering FDI in LIC
Before launching the IPO of LIC, the government is trying to increase the status of the company through FDI i.e. foreign direct investment. After allowing FDI, foreign investors will be able to participate in the proposed mega IPO of the company. Discussions are going on between the Department of Financial Services and DIPAM on this proposal.

According to sources, the discussion on this proposal is going on for the last few weeks. This will be discussed among many ministries and cabinet approval will also be necessary. Explain that according to the current FDI policy, 74 percent foreign investment is allowed in the insurance sector. But these rules do not apply to Life Insurance Corporation of India (LIC). LIC has a separate LIC Act.