Govt Appoints Milliman Advisors To Find Out LIC Value Ahead Of IPO

The work on determining the embedded value of India's largest insurer would start soon, Dipam Secretary Tuhin Kanta Pandey tweeted

Topics

Life Insurance Corporation | IPOs

Nikunj Ohri  |  New Delhi 

LIC

This would help the government in moving ahead for the listing as the valuation of LIC would be derived

The government has moved a step closer towards the listing of India’s largest insurer of India. The Department of Investment and Public Asset Management (Dipam) has selected Milliman Advisors LLP India for ascertaining the embedded value of LIC before its listing, which is seen as India’s one of the largest initial public offerings.

The work on determining the embedded value of India’s largest insurer would start soon, Dipam Secretary Tuhin Kanta Pandey tweeted.

This would help the government in moving ahead for the listing as the valuation of LIC would be derived. Once valuation is decided, the government will have to appoint merchant bankers for the transaction.

The government had shortlisted three actuaries EY Actuarial Services LLP, Milliman Advisors LLP, and Willis Towers Watson Actuarial Advisory LLP.

The IPO of LIC will help the government in getting a substantial chunk in divestment receipts. The government had budgeted Rs 2.1 trillion as divestment receipts for the current financial year, out of which Rs 90,000 crore was expected to be mopped up from LIC listing and a stake sale in IDBI Bank. However, it’s unlikely that LIC will be listed in the current financial year.

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First Published: Thu, December 31 2020. 22:52 IST

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