“The potential size of the IPO is expected to be far larger than any precedent in Indian markets. In order to achieve a successful IPO, it is the endeavor of the government to attract investment from institutional investors, both domestic and global, in addition to the retail investors,” the department of investment of public asset management (DIPAM) said in the RFP.
The government will appoint 10 book running lead managers (BRLMs) which will form a syndicate.
The selected bankers will submit book building of investors with likely volume and likely price based on latest interaction and response of the fund managers and will advise DIPAM on the proper and optimum timing and best floor price for the IPO.
It has set the last date of bids at August 5. Bids can be submitted by SEBI-registered merchant bankers having a valid certificate, singly or as a consortium, with experience of having handled an IPO of Rs 5,000 crore in size or offer for sale or qualified institutional placement or rights issue of Rs 15,000 crore in last four financial years.
The percentage of paid-up equity to be issued or divested as part of the IPO will be determined based on the post issue capital of LICI calculated in consonance with the clause 19 (2) of the Securities Contracts (Regulation) Rules, 1957 (SCRR), the department said.
“A part of the public offering may be reserved for employees and policyholders of LICI,” it said.
The selected BRLM will structure the IPO, undertake due diligence activities and prepare the DRHP, conduct pre-market survey, road shows to generate interest amongst prospective investors and ensure optimum return.
Separately, the government will appoint a law firm as legal adviser to the transaction for which bids have been invited till August 6. Domestic law firms should submit proposal in consortium with an international law firm of repute, with similar experience and expertise in public offerings in capital markets, the department said. The same deadline has been kept for bidders for appointing an advertising agency.
Meanwhile, the final data for bidders to submit proposals for registrar and share transfer agent has been kept at August 5. The RTA should be category – I SEBI registered and having no penalty or debarment by SEBI in the past three years and no pending investigations against it or its management or employees.
The RTA should have maintained at least 10 lakh folios as on March 31, 2021 and handled a minimum number of 10 lakh applications from April 1, 2018 and March 2021, in any one transaction of IPOs or FPOs. It should have positive financial net worth and profit record in all the past three years and a functional office in Mumbai.