You are here: Home » Companies » News
Business Standard

FinMin invites bids from actuarial firms for valuing LIC ahead of IPO

The government plans to sell minority stake in the insurance behemoth and list it on the bourses

Topics
Life Insurance Corporation | IPO

Press Trust of India  |  New Delhi 

How listing will transform LIC
The last date for submission of bids is December 8

The finance ministry on Monday invited bids from actuarial firms for arriving at the embedded value of (LIC) ahead of its stake sale.

The government plans to sell minority stake in the insurance behemoth and list it on the bourses. It has already appointed Deloitte and SBI Caps as pre-transaction advisors.

In the bid notice, the Department of Investment and Public Asset Management (DIPAM) said LIC needs to develop an Indian Embedded Value (IEV) reporting framework for necessary disclosures for the proposed Initial Public Offering (IPO).

Embedded value is a common valuation measure used to estimate the consolidated value of shareholders' interest in an insurance company.

The Request for Proposal has been issued to seek proposals / bids from reputed and eligible actuarial firms to work with LIC to "develop IEV in line with the requirements of the relevant Acts and regulations, Actuarial Practice Standards and guidance notes issued by the Institute of Actuaries of India and LIC Act, 1956, and to provide support during the process", it said.

The last date for submission of bids is December 8.

The government has budgeted to collect Rs 2.10 trillion from stake sales this fiscal. This include Rs 1.20 trillion from CPSE disinvestment and Rs 90,000 crore from selling stake in financial institutions.

So far this fiscal, the government has been able to mop up Rs 6,138 crore from CPSE disinvestment.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, November 16 2020. 16:42 IST
RECOMMENDED FOR YOU
.