April 21, 2024

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Finance ministry invites bids from actuarial companies for valuing LIC in advance of IPO

NEW DLHI: The finance ministry on Monday invited bids from actuarial corporations for arriving at the embedded price of Lifetime Insurance coverage Corporation (LIC) in advance of its stake sale.
The authorities options to market minority stake in the insurance coverage behemoth and checklist it on the bourses. It has already appointed Deloitte and SBI Caps as pre-IPO transaction advisors.
In the bid notice, the Section of Financial commitment and General public Asset Management (DIPAM) said LIC requires to develop an Indian Embedded Worth (IEV) reporting framework for required disclosures for the proposed Initial Public Presenting (IPO).
Embedded benefit is a widespread valuation evaluate applied to estimate the consolidated worth of shareholders’ fascination in an insurance plan organization.
The Ask for for Proposal has been issued to seek proposals / bids from reputed and suitable actuarial companies to perform with LIC to “acquire IEV in line with the specifications of the suitable Functions and rules, Actuarial Practice Benchmarks and direction notes issued by the Institute of Actuaries of India and LIC Act, 1956, and to present assistance during the IPO course of action,” it mentioned.
The past date for submission of bids is December 8.
The governing administration has budgeted to collect Rs 2.10 lakh crore from stake gross sales this fiscal. This incorporate Rs 1.20 lakh crore from CPSE disinvestment and Rs 90,000 crore from promoting stake in economical institutions.
So considerably this fiscal, the federal government has been equipped to mop up Rs 6,138 crore from CPSE disinvestment.