Govt finalises bankers to advance LIC stake sale

The Department of Investment and Public Asset Management (DIPAM) has finalised the appointment of merchant bankers and legal advisors to facilitate the proposed stake sale in the Life Insurance Corporation of India (LIC), DIPAM Secretary Arunish Chawla said on Friday.

He added the government was expecting to shortlist the final bidder for the sale of its stake in IDBI Bank by March. After October, the government will invite financial bids and aims to receive them by December, Chawla clarified.

In 2022, the government had invited expressions of interest to sell its 30.48% stake in IDBI Bank and Life Insurance Corp. of India’s 30.24% stake in the bank.

On the LIC stake sale, the secretary said the request for proposals for the appointment process had been completed.

“The process of appointment of merchant bankers and legal advisors has been completed. Merchant bankers have been appointed for three years, extendable to five years. Merchant bankers will work for all financial institutions,” Chawla said.

The move is part of the government’s broader plan to divest a 6.5 per cent stake in LIC over the next two years through multiple tranches of offer for sale, aimed at meeting the Securities and Exchange Board of India’s minimum public shareholding norms by May 16, 2027.

Currently, the government holds a 96.5 percent stake in LIC, having previously sold 3.5 percent during the company’s initial public offering in 2022.

The stake sale is expected to generate approximately Rs 35,000 crore.

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