LIC IPO Set To Be Delayed To Next Fiscal Year
The initial public offering (IPO) of India’s state-run Life Insurance Corp (LIC) is expected to be postponed until next fiscal year due to market volatility caused by Russia’s invasion of Ukraine, according to Bloomberg News, citing sources.
The government intends to raise approximately $8 billion in what will be India’s largest stock offering by selling 5% of LIC’s stake this month, before the fiscal year ends on March 31.
Due to the high market volatility caused by Russia’s attack on Ukraine, the much-anticipated initial public offering (IPO) of Life Insurance Corporation of India (LIC) is likely to be postponed into the next fiscal year. The largest IPO on the Indian stock exchanges was scheduled to take place in March 2022.
Since February 24, when Russia began military operations against its neighbour Ukraine, the Sensex has fallen 2,414 points, or 4.21 percent, and the Nifty has fallen 684 points, or 4 percent.
A rise in the price of Brent crude as a result of economic sanctions imposed on Russia, the world’s largest oil producer, has hampered the global economy’s recovery and resulted in losses on stock markets around the world. The price of Brent crude oil, which was $96.84 per barrel on February 23, a day before the Russian attack, nearly reached $120 per barrel yesterday. On March 3, the price reached an intraday high of $119.84 per barrel.
According to reports, the IPO could take place in April if market volatility subsides. However, no official announcement has been made regarding the postponement of the share sale.
In light of the ongoing Russia-Ukraine conflict, Finance Minister Nirmala Sitharaman has already indicated a review of the LIC’s IPO launch date.
“Ideally, I would like to go ahead with it because we had planned it for some time based solely on Indian considerations,” Sitharaman told the Hindu Business Line in an interview. “However, if global considerations require that I look at it again, I would not mind doing so,” she said.
