Business Desk, AnyTV, New Delhi
Published by: Deepak Chaturvedi
Updated Wed, 02 Mar 2022 09:52 AM IST
Summary
Government May Review Timing Of LIC IPO: Wednesday is the seventh day of the ongoing war between Russia and Ukraine and it is getting intensified. Now its shadow is also visible on the country’s biggest IPO to be launched this month. There are indications that LIC IPO launch time may be extended. Finance Minister Nirmala Sitharaman has said that considering the situation, its timeline can be considered.
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Expansion
possible on timeline
Significantly, the country’s largest insurance company Life Insurance Corporation of India (LIC) is proposed to present the IPO this month. This will be the biggest IPO ever in the history of the country. But, as Russia’s attacks on Ukraine are intensifying, dark clouds have started hovering over this IPO as well. On Tuesday, Finance Minister Nirmala Sitharaman indicated that the government may reconsider the timeline of LIC’s IPO if the situation arises due to the rapidly changing international situation.
watch the international situation
Finance Minister Nirmala Sitharaman has said that although I would like to proceed according to the schedule in the case of LIC IPO, because for this we have prepared well in advance keeping in mind the Indian conditions. But if the need arises keeping in view the international situation, I am also ready to reconsider the timing of its presentation. He said that if a promoter of the private sector has to take such a decision, then he has to explain only to the board of his company, but I will have to explain this to the whole world.
Disinvestment target may be affected
It is worth noting that if the government reconsiders the situation, then it is possible to affect the timeline of LIC IPO. The draft documents for the IPO were submitted to the market regulator SEBI on February 13 and several reports suggested that it could be launched on March 11. According to the documents, the embedded value of LIC is estimated at Rs 5 lakh 40 thousand crore ($71.7 billion). In fact, the biggest part of the Modi government’s plan to sell government assets to meet its budget deficit during the financial year ending March 31, 2022, is to come from LIC’s IPO.
Government selling 5 percent stake
Explain that through LIC’s IPO, the government is selling its five percent stake in it. According to earlier reports, the size of LIC’s IPO could be Rs 63,000 crore. In this, it is being said to reserve 10 percent for policyholders, while five percent can be reserved for the employees of the company in the IPO.