FIIs may be allowed to buy up to 20% in LIC

New Delhi, September 8

The government is considering allowing foreign institutional investors (FIIs) to buy up to a total of 20% stake in state-owned Life Insurance Corporation (LIC), a government source said on Wednesday, as it presses ahead with a stake sale.

The listing of LIC is set to be India’s biggest ever IPO, with the government aiming to raise up to $12.2 billion from its stake sale.

At present, even though FIIs are allowed to hold up to 74% of private insurance companies and up to 20% of state-owned banks, they are not permitted to own shares in LIC.

Enabling this would allow foreign pension funds, insurers and mutual funds to participate in the IPO of India’s largest life insurer. — Reuters

10 bankers appointed for managing IPO

The government has appointed 10 merchant bankers including Goldman Sachs, Citigroup, Nomura Financial Advisory and Securities India to manage the mega IPO of LIC
Other selected bankers include SBI Capital Market, JM Financial, Axis Capital, BofA Securities, JP Morgan India, ICICI Securities, and Kotak Mahindra Capital Co Ltd