Indian Law Firms Reluctant To Advise On IPO Of Insurance Giant LIC: Report
NDTV
With millions of policyholders and a share of 66% of new premium collections in a crowded insurance market, LIC is a household name, managing assets of more than $450 billion.
India's plans to list state-run Life Insurance Corporation (LIC) face an unusual problem: domestic law firms are shying away from advising the government, deterred by the low fees on offer at the time of a lucrative boom in corporate stock listings.
With millions of policyholders and a share of 66% of new premium collections in a crowded insurance market, LIC is a household name, managing assets of more than $450 billion.
The government is scrambling to list the insurance behemoth by March, in an exercise set to be India's biggest IPO, at a probable $12 billion. As many as 16 global and domestic investment banks recently bid to handle it.
But top law firms that would normally be keen on such big-ticket IPOs to boost their credibility in government circles are hesitant to advise New Delhi, as their teams are stretched by the corporate IPO boom, five law firm partners told Reuters.
