<p>The government is likely to invite bids for merchant bankers within a fortnight to manage Life Insurance Corporation of India’s disinvestment after the Union Cabinet cleared part of the Centre’s stake in the insurance behemoth.</p>.<p>The Cabinet Committee for Economic Affairs (CCEA) cleared the disinvestment of LIC through an initial public offering (IPO) last week, according to government officials.</p>.<p>The size of IPO and the extent of the government’s stake dilution will now be decided by an alternative mechanism. The government has said it will retain a majority stake and management control to protect the interest of policy holders.</p>.<p>Up to 10% of LIC IPO would be reserved for policyholders, sources told DH.</p>.<p>The stake sale is likely to take place in between October this year and March 2022 depending on market conditions.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/business/business-news/lic-looking-to-bid-in-zomato-ipo-report-1007636.html" target="_blank">LIC looking to bid in Zomato IPO: Report</a></strong></p>.<p>Touted as the biggest of all IPOs, the LIC stake sale may fetch the government more than Rs 1 lakh crore, according to experts.</p>.<p>The share sale in LIC has now become crucial for the government to meet a hefty disinvestment target of Rs 1.75 lakh crore in the current fiscal ending March 2022.</p>.<p>Of the Rs 1.75 lakh crore, Rs 1 lakh crore will come from selling government stake in public sector banks and financial institutions and Rs 75,000 crore would come as CPSE disinvestment receipts.</p>.<p>Deloitte and SBI Caps have been appointed as pre-IPO transaction advisors.<br /> </p>
<p>The government is likely to invite bids for merchant bankers within a fortnight to manage Life Insurance Corporation of India’s disinvestment after the Union Cabinet cleared part of the Centre’s stake in the insurance behemoth.</p>.<p>The Cabinet Committee for Economic Affairs (CCEA) cleared the disinvestment of LIC through an initial public offering (IPO) last week, according to government officials.</p>.<p>The size of IPO and the extent of the government’s stake dilution will now be decided by an alternative mechanism. The government has said it will retain a majority stake and management control to protect the interest of policy holders.</p>.<p>Up to 10% of LIC IPO would be reserved for policyholders, sources told DH.</p>.<p>The stake sale is likely to take place in between October this year and March 2022 depending on market conditions.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/business/business-news/lic-looking-to-bid-in-zomato-ipo-report-1007636.html" target="_blank">LIC looking to bid in Zomato IPO: Report</a></strong></p>.<p>Touted as the biggest of all IPOs, the LIC stake sale may fetch the government more than Rs 1 lakh crore, according to experts.</p>.<p>The share sale in LIC has now become crucial for the government to meet a hefty disinvestment target of Rs 1.75 lakh crore in the current fiscal ending March 2022.</p>.<p>Of the Rs 1.75 lakh crore, Rs 1 lakh crore will come from selling government stake in public sector banks and financial institutions and Rs 75,000 crore would come as CPSE disinvestment receipts.</p>.<p>Deloitte and SBI Caps have been appointed as pre-IPO transaction advisors.<br /> </p>
