Kickstarting the process for LIC disinvestment, the government has invited bids from merchant bankers and legal advisors for advising it on the proposed mega initial public offer.

The Department of Investment and Public Asset Management (DIPAM) will appoint up to ten merchant bankers and one legal firm for assisting and advising on the stake sale.

The last date for putting in bids is August 6, as per a notice issued by DIPAM.

Last week, the Union Cabinet approved an Initial Public Offer (IPO) of LIC and the modalities such as issue size, pricing and timing would be decided by a panel headed by Finance Minister Nirmala Sitharaman.

The listing of LIC will be crucial for the government to meet its disinvestment target. The government aims to mop up Rs 1.75 lakh crore in the current fiscal from minority stake sales and privatisation.

Of the Rs 1.75 lakh crore, Rs 1 lakh crore is to come from selling the government's stakes in public sector banks and financial institutions. The remaining Rs 75,000 crore would come as CPSE disinvestment receipts.

So far, in the current fiscal, the government has mopped up over Rs 7,500 crore from sale of SUUTI stake in Axis Bank and OFS of NMDC.