55867In view of reduced inflation and expenses, will it be right to invest in IT stocks?
Multiple bankers with experience in managing large public offerings would be hired by the government and they would decide the size of the IPO
Life Insurance Corporation of India (LIC), which is set to become the biggest share sale by an Indian company, will soon seek proposals from investment bankers to the government to manage the initial public offering, Hindustan Times reported Wednesday.
Narrowing the fiscal deficit has been the objective for the government and it is now betting on share sales amid rising expenditure and slump in revenues due to the Covid-19 pandemic. The disinvestment target set by the government this fiscal year amounts to Rs.1.75 lakh crores.
Role of Bankers
Multiple bankers with experience in managing large public offerings would be hired by the government and they would decide the size of the IPO, its structure and timing in consultation with the Department of investment and public asset management (Dipam) an official who spoke with HT said.
The investment bankers would also be responsible for undertaking due diligence activities like preparing IPO documents, regulatory filing formalities and ensuring best return from IPO to government, by conducting pre market survey, road shows to generate interest, IPO underwriting and share allocation.
Despite the second wave of the pandemic the government has managed to sell a 1.95% stake in Axis Bank held through Specified Undertaking of the Unit Trust of India (SUUTI) and 7.49% stake in National Mineral Development Corporation (NMDC) added the HT report.
DIPAM secretary Tuhin Kumar Pandey, in an interview to HT in March has said that the issue will be large but not more than Rs 1 lakh crore.
Just recently, the department of financial services brought amendment to the rules which would allow LIC to have a chief executive officer and a managing director.