The Finance Ministry on Monday invited bids from actuarial firms to get ahead of its stake sale at the embedded value of Life Insurance Corporation (LIC). The government’s plan is to sell a minority stake in Insurance Beameth and list it. It has already appointed Deloitte and SBI Caps as IPO transaction advisors.
In the bid notice, the Department of Investment and Public Asset Management (DIPAM) stated that LIC is required to develop an Indian Embedded Value (IEV) reporting framework for the disclosures required for the proposed initial public offering (IPO).
Embedded value is a general valuation measure that is used to estimate the consolidated value of shareholders’ interest in an insurance company.
The request for proposal has been issued for seeking proposals / bids from reputed and qualified actuarial firms to work with LIC “Develop IEVs in conformity with the requirements of the relevant Acts and Regulations, issued by the Institute of Actuarial Practice Standards and Guidelines Guidance note made to India and LIC Act, 1956, and to provide assistance during the IPO process “, said. The last date for submission of bids is 8 December.
The government has set a budget to collect Rs 2.10 lakh crore from stake sale this financial year. This includes Rs 1.20 lakh crore from CPSE disinvestment and Rs 90,000 crore from stake sale in financial institutions. In this financial year, the government has been able to withdraw Rs 6,138 crore from Central Public Sector Enterprise (CPSE) disinvestment.
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