New Delhi: On Monday, the Ministry of Finance invited actuarial firms to submit offers to arrive at the implied value of Life Insurance Corporation (LIC) before the sale of their stake.
The government plans to sell a minority stake in the insurance giant and list it on the exchanges. It has already appointed Deloitte and SBI Caps as pre-IPO transaction advisers.
In the tender notice, the Department of Investment and Public Asset Management (DIPAM) said that LIC needs to develop an Indian Embedded Value (IEV) reporting framework for the disclosures required for the proposed initial public offering (IPO).
Implied value is a common valuation measure used to estimate the consolidated value of a shareholder’s interest in an insurance company.
The Request for Proposal has been issued to seek proposals / bids from recognized and eligible actuarial companies to work with LIC to “develop IEVs in accordance with the requirements of relevant laws and regulations, actuarial practice standards, and guidance notes issued by the Actuaries Institute of India and the LIC Act 1956, and to provide support during the IPO process, “he said.
The last date for submission of offers is December 8.
The government has budgeted to charge ₹Rs 2.10 crore of the sales share this tax. This includes ₹Rs 1.20 crore lakh from the CPSE divestment and ₹Rs 90 billion for sale of stake in financial institutions.
So far this prosecutor, the government has been able to clean ₹Rs 6,138 crore for divestment of CPSE.
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