LIC IPO might get postponed to April, claims the government officials
- ByStartupStory | March 14, 2022
India’s largest IPO of Life Insurance corporation(LIC) of India might get postponed to April, says the government officials even though the government keeps a close watch on market VIX( Volatility Index).
Three senior officials of LIC broke the silence on the condition of anonymity, indicating that the government has a window till 17 may to move ahead with the IPO. Government aims to sell 5% of its shareholding in the insurer through an Offer for sale, to garner ₹75,000 crores.
An official stated that, “we will try to do the LIC IPO some time next month, by the end of April. We don’t want to delay it further. ”
Also, the government suspects the geopolitical tension to relax in April.
The second official stated that the VIX in stock market due to uncertainty caused by the war has reduced but investor sentiment to be kept in mind before proceeding. The official also emphasised that the size of an IPO would be the largest ever.
An IPO push to April will impact the government’s asset sales goal and fiscal deficit target. Government expects fiscal spending overshoot for FY23, IPO earnings may act as additional buffer. The success of IPO is critical for the government to meet, which has been slashed by more than half to ₹78,000 crore for the current fiscal.
Mint has reported that the government is seeking a valuation of ₹15 trillion for LIC based on the ₹5.39 trillion.
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