Govt shortlists four law firms to assist LIC IPO after failed first attempt

Topics LIC  | IPO | Centre

Photo: Bloomberg
The government has now shortlisted four law firms to assist the government in the initial public offering (IPO) of Life Insurance Corporation of India (LIC) after the first attempt failed to get adequate response from intermediaries.

Crawford Bayley, Cyril Amarchand Mangaldas, Link Legal and Shardul Amarchand Mangaldas & Co have been shortlisted to act as legal adviser for the LIC IPO, and will make a representation before the government on Friday.

The financial bids will be opened by a high level committee after presentations are made by these law firms, and Department of Investment and Public Asset Management (DIPAM) would intimate the qualified bidder.

Earlier, the government had not received adequate response from law firms, and had floated a fresh request for proposal with some relaxations. It introduced “milestone payments” where the selected legal adviser would receive 50 per cent of the fee after the filing of the Draft Red Herring Prospectus (DRHP) and the remaining after listing of LIC shares. Earlier, legal advisors were supposed to get their fee “after successful and satisfactory completion of the transaction”.

The government had also clarified that the legal adviser would assist LIC and the government for three years from the time of placing the bid.

The government is targeting to launch the IPO of LIC in the last quarter of the financial year. The listing of insurer’s shares on exchanges would involve part-sale of the government’s stake and raising fresh equity share capital. A part of the public offering may be reserved for employees and policyholders of LIC.


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

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel