They include Goldman Sachs, Citigroup,
and SBI Caps, Reuters quoted government sources as saying.
Sixteen banks were in the race.
Other selected lenders include JM Financial Ltd, Axis Capital, Nomura, BofA Securities, J.P. Morgan India Pvt Ltd, ICICI Securities, according to the report.
In July, the cabinet committee on economic affairs, or CCEA, gave its in-principle approval to list LIC.
A 10% stake sale in the insurer could fetch around Rs 1-1.5 lakh crore as per industry estimates. A ministerial panel, called the Alternative Mechanism on strategic Divestment, is expected to decide soon on the size of the stake to be sold. It could be around 10%, sold in two tranches, the sources said.
“The potential size of the IPO is expected to be far larger than any precedent in Indian markets,” one of the sources said, adding that roadshows would be held in coming months in all major global financial centres to attract investors.
LIC, India’s biggest insurance company with assets of over Rs 34 lakh crore ($461.4 billion), has a subsidiary in Singapore and joint ventures in Bahrain, Kenya, Sri Lanka, Nepal, Saudi Arabia and Bangladesh.
The government is simultaneously pursuing strategic disinvestment in companies such as Air India and BPCL.
The government is also looking to complete at least three public sector disinvestment transactions before rolling out the mega IPO of the national insurer.