Linklaters, Duane Morris & Selvam and Shardul and Cyril Amarchand act on India's biggest LIC IPO

The IPO is going to be fully an offer for sale and the proceeds will go fully towards the government and help it reach its disinvestment target.

Life Insurance Corporation of India is gearing up for India's largest Initial Public offering. The insurance giant filed its offer documents before Stock Exchange Board of India on Sunday.

With a total equity base of 6.32 billion shares, of which LIC plans to sell 5% 31.6 crore shares (316,249,885) according to the DRHP.

The Government of India presently owns 100 percent shares in LIC. Once listed, it is likely to become the country's biggest company by market capitalisation.

Cyril Shroff
Cyril Shroff

Cyril Amarchand Mangaldas advised the Government of India on Indian law while Duane Morris & Selvam Singapore advised on foreign law aspects of the IPO

Shardul Amarchand Mangaldas and Linklaters Singapore represented the Bankers for the IPO - Kotak, Axis, Bank of America, Goldman Sachs and others.

Linklaters team in Singapore is led by Head of South and Southeast Asia Capital Markets partner Amit Singh, with support from counsel Joseph Wolpin and managing associate Anandee Banerji.

Capital markets partner Amit Singh, commented:

We are honoured to have had the opportunity to work on India’s largest ever IPO. This is not only a landmark transaction in the insurance industry, but also in the wider development of the Indian equity capital markets.”

Amit Singh
Amit Singh

Saraf and Partners advised DIPAM (Department of Investment and Public Asset Management), Government of India as pre-IPO legal advisors for the IPO of LIC (Life Insurance Corporation).

In its role, Saraf and Partners advised, amongst other matters, on various policy and legislative changes required in relation to the IPO of LIC.

The team was led by Partner Akshay Nagpal and supported by Partners Akshay Jain and Murtaza Zoomkawala, and Associate Nikhil Issar

LIC is involved in 26,919 CASES of criminal, consumer, civil proceedings, tax proceedings:

- 269 Criminal cases

- 12,323 Consumer Cases

- 14,263 Civil cases (including 60 contempt of court matters)

- 63 Tax related cases

- 1 regulatory case

The IPO is going to be fully an offer for sale and the proceeds will go fully towards the government and help it reach its disinvestment target.

In the Union Budget presented earlier this month, the government had pegged disinvestment receipts at Rs. 78,000 crore for this financial year.

The pricing of the IPO will be decided in due course, two days before the opening of the public offer, according to the prospectus. It also added that policyholders and employees may get a discount compared to the price offered to the public at large. A minimum 35 per cent of issue will be reserved for retail investors.

The Parliament of India passed the Life Insurance Corporation Act on June 19, 1956, and the Life Insurance Corporation of India was created on September 1, 1956.

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