Finance Ministry invites bids from actuarial firms for valuing LIC ahead of IPO

It invited bids at the embedded value of Life Insurance Corporation ahead of its stake sale. The government would sell minority stake in LIC and list it on the bourses. It has appointed Deloitte and SBI Caps as pre-IPO transaction advisors.

In the bid notice, the Department of Investment and Public Asset Management said LIC needs to develop an Indian Embedded Value reporting framework for necessary disclosures for the proposed IPO.

Embedded value is a common valuation measure used to estimate consolidated value of shareholders' interest in an insurance company.

Request for Proposal has been issued to seek proposals/bids from reputed and eligible actuarial firms to work with LIC to develop IEV in line with the requirements of the relevant Acts and regulations, Actuarial Practice Standards and guidance notes issued by the Institute of Actuaries of India and LIC Act, 1956, and to provide support during the IPO process.

The last date for submission of bids is December 8.

The government has budgeted to collect Rs 2.10 lakh cr from stake sales in 2020-21 which include Rs 1.20 lakh cr from CPSE disinvestment and Rs 90,000 cr from selling stake in financial institutions.