Govt shortlists four law firms toassist LIC IPO after failed first attempt

by Ricky anand

Crawford Bayley, Cyril Amarchand Mangaldas, Link Legal and Shardul Amarchand Mangaldas will make a representation before govt on Friday Gradual tweaks to LIC surplus payouts likely; Finmin exploring a approach path LIC IPO: Centre plans big push to participation by retail investors LIC letter forbids employees from commenting on upcoming mega IPO conundrum: Massive subscription, weak returns; what’s behind the trend? the govt has now shortlisted four law firms to help the govt within the initial public
offering (IPO) of life assurance Corporation of India (LIC) after the primary attempt did not get adequateresponse from intermediaries.

Crawford Bayley, Cyril Amarchand Mangaldas, Link Legal and Shardul Amarchand Mangaldas & Coare shortlisted to act as legal adviser for the LIC IPO, and can make a representation before the govt on Friday. The financial bids are going to be opened by a high level committee after presentations are made by these law firms, and Department of Investment and Public Asset Management (DIPAM) would intimate thequalified bidder.

Earlier, the govt had not received adequate response from law firms, and had floated a fresh request for proposal with some relaxations. It introduced “milestone payments” where the chosen legal adviser would receive 50 per cent of the fee after the filing of the Draft Red Herring Prospectus (DRHP) and therefore the remaining after listing of LIC shares. Earlier, legal advisors were alleged to gettheir fee “after successful and satisfactory completion of the transaction”.

the govt had also clarified that the legal adviser would assist LIC and therefore the government forthree years from the time of placing the bid. The govt is targeting to launch the IPO of LIC within the half-moon of the fiscal year . The listing of insurer’s shares on exchanges would involve part-sale of the government’s stake andraising fresh equity share capital. A neighborhood of thegeneral public offering mightbe reserved forworkers andpolicyholders of LIC.