The government is scrambling to list the LIC by March
India's plan to found a public life insurance company (LIC) has encountered an unusual problem: domestic law firms are reluctant to advise the government, deterred by low interest rates during the lucrative stock market boom.
With millions of policyholders and 66% of new premium income in a crowded insurance market, LIC is a household name and manages over $ 450 billion in assets.
The government is pushing for the insurance giant to participate in what is arguably India's largest public offering, valued at around $ 12 billion in March. Recently, up to 16 global and national investment banks have offered to study them. But large law firms, which would normally be interested in such IPOs to bolster their credibility in government circles, are reluctant to advise New Delhi as their teams are overwhelmed by the business boom, five employees told Reuters.
"Most big law firms in India are overburdened with IPO work," said Nitin Potdar, an M&A partner at top Indian law firm J. Sagar Associates. "And the LIC PIO would need real big teams of experienced lawyers."
The size and complex structure of LIC's stores and products make it a "nightmare" for lawyers preparing the prospectus, he added.
Sources:- times of India
The EX- Maharashtra Chief Minister rebuts the Uddav charge because the Central Agencies are being misused. The day after Maharashtra Chief Minister Ud...
New Delhi: The hashtag #ArrestAIIMSCulprits is spreading like wildfire on the trending page of Twitter. A video that consists of mocking Ramayan...