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Edelweiss withdraws from LIC pre-IPO advisor selection over concerns of conflict of interest

Edelweiss has voluntarily opted out of the process following concerns raised by the government on a potential conflict of interest scenario due to its existing life insurance joint venture with Tokio Marine.

August 01, 2020 / 07:23 AM IST

Ashwin Mohan & Gaurav Choudhury

Edelweiss Financial Services has withdrawn from a government process to select two pre-initial public offering (IPO) transaction advisors for the mega Life Insurance Corporation IPO after concerns were raised over the possible conflict of interest, people with knowledge of the matter told Moneycontrol.

“Edelweiss has written to the government and voluntarily opted out of the process following concerns raised by the government on a potential conflict of interest scenario due to the firm’s existing life insurance joint venture with Tokio Marine,” said an individual cited above.

The proposed listing by LIC, which dominates India’s insurance sector, is expected to be the biggest in the history of the Indian capital markets. LIC, in which the government owns 95 percent, is India’s oldest and biggest insurer with total assets in excess of Rs 31 lakh crore.