Citi, Edelweiss and SBI Capital among contenders for LIC IPO advisor role

Initial Public Offering (IPO). Image: DEALSTREETASIA

Investment banks Citigroup, Edelweiss, SBI Capital Markets, Credit Suisse and Deloitte are in the running for the role of pre-IPO advisor to Life Insurance Corp of India, for what is likely to be the biggest IPO in the Indian markets.

These banks were shortlisted on Monday after a round of technical bids and will now move on to financial bids, which will open on Tuesday morning, said a person aware of the development. These five firms have been shortlisted out of 11 that had shown interest.

“These firms were shortlisted based on past experience in insurance IPOs and their investor reach, among other criteria,” he said.

Post the financial bids, two of these firms will finally be mandated for the pre-IPO work, the person added.

“The scope of work of these two advisors will be to prepare LIC to go for a public listing, including advising the government on various aspects. This will include advising on valuation and structuring of the deal,” a second person said, speaking on the condition of anonymity.

Mint reported on 19 June that the Department of Investment and Public Asset Management (Dipam) under the finance ministry issued the request for proposal (RFP) seeking to engage as many as two pre-transaction advisers for partial disinvestment of the government’s LIC stake through an IPO. The advisers will assist the government with legal inputs on the amendments needed to the LIC Act, especially with regard to the corporation’s future capital structure. The government needs to amend the LIC Act first.

There are 24 life insurers, with LIC commanding a market share of 69% in FY20. During the fiscal, it collected a total first-year premium of 1.78 trillion—25.17% higher than the previous year’s 1.42 trillion, according to the Insurance Regulatory and Development Authority of India.

LIC, in which the government holds a 95% stake, has assets worth 34 trillion.

Spokespersons for Citi, Credit Suisse, Edelweiss, SBI Capital and Deloitte could not be immediately reached for a comment.

The article was first published on livemint.com.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.