Govt may review IPO plan for Life Insurance Corp amid Russia-Ukraine crisis – Zee News
New Delhi: The government could go for reviewing plans for the Life Insurance Corp of India (LIC) IPO scheduled for this month amid Russia-Ukraine crisis, that has shook the world markets including India.
Referring to the timing of the LIC listing, Finance minister Nirmala Sitharaman in an interview to Business Line newspaper said that “If global considerations warrant that I need to look at it, I wouldn`t mind looking at it again.” (Also read: Can lapsed policy holders apply for the IPO?)
Though the FM said the government ideally hoped to proceed with the listing as planned, however it might have to take a review of the situation since Russia has invaded Ukraine.
“…Now, there is a full-scale war. Therefore, I need to go back and review the situation,” Sitharaman added. (Also read: Cabinet allows up to 20% FDI in state-owned insurer)
She added that the pressure of meeting the revenue targets from the sale of government stakes in companies in the current fiscal year ending March 31 would not be factor for deciding the timing of LIC listing.
“No, I don’t think that’s a factor. ..I have to explain it to the whole world,” she said.
Last week, the Union Cabinet permitted up to 20 per cent foreign direct investment (FDI) under automatic route in IPO-bound LIC. However, the existing FDI policy did not prescribe any specific provision for foreign investment in LIC, which is a statutory corporation established under the LIC Act, 1956.
LIC had in February filed draft papers with capital market regulator Sebi for the sale of 5 per cent stake by the government for an estimated Rs 63,000 crore.
Touted to be the country’s biggest ever public offering, the IPO of over 31.6 crore shares or 5 per cent government stake is likely to hit the D-street in March and employees and policy holders of the insurance behemoth would get a discount over the floor price. The LIC IPO would be the biggest IPO in the history of Indian stock market and once listed LIC’s market valuation would be comparable to top companies like RIL and TCS.
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