New Delhi, Reuters. The IPO of Life Insurance Corp (LIC) can be brought in the next financial year. In fact, in view of the ongoing war between Russia-Ukraine, the market continues to be volatile. In such a situation, the IPO of LIC, which was to be launched in March 2022, can be postponed to the next financial year. However, a reply was sought from LIC on this, but no response was received till writing the news. Significantly, the government is eyeing the ongoing war between Russia and Ukraine, and hence the government wants to assess the situation to go ahead with the LIC IPO. The Russo-Ukraine War continues for the ninth day.
Notably, the face value of LIC shares is Rs 10 per share. The government has 100 percent stake in LIC. LIC Public Issue will be the biggest IPO in the history of Indian stock market. So far, the amount raised from Paytm’s IPO in 2021 was the largest at Rs 18,300 crore, followed by Coal India (2010) at around Rs 15,500 crore and Reliance Power (2008) at Rs 11,700 crore. Once LIC is listed, its market valuation will be at par with top companies like RIL and TCS.
The government was hoping to raise Rs 63,000 crore by selling 5 per cent stake in the life insurance firm to meet its disinvestment target of Rs 78,000 crore in the current fiscal. If the IPO is postponed to the next financial year, the government will miss the revised disinvestment target by a huge margin.
At the same time, so far this fiscal, the government has raised Rs 12,030 crore through disinvestment of CPSEs and strategic sale of Air India. The government had earlier projected to raise Rs 1.75 lakh from disinvestment during 2021-22.
Russia Ukraine War: Government may postpone LIC IPO due to Russia-Ukraine war, expected to come this month
New Delhi, PTI. Due to the impact of the Russian-Ukraine war on the global financial markets, the government may postpone the mega IPO of LIC. Sources say the government may wait for an opportune time to get the maximum value of its stake in the insurance company. A government source said, “It is all-out war now so we have to assess the situation to go ahead with the LIC IPO.” The government may postpone it for the next financial year. The IPO was expected to hit the market this month.
The Russo-Ukraine war continued for the seventh day on Wednesday as fighting intensified in the Ukrainian capital Kyiv and other major cities. The government was hoping to raise Rs 63,000 crore by selling 5 per cent stake in the life insurance firm to meet its disinvestment target of Rs 78,000 crore in the current fiscal. If the IPO is postponed to the next financial year, the government will miss the revised disinvestment target by a huge margin. So far this fiscal, the government has raised Rs 12,030 crore through disinvestment of CPSEs and strategic sale of Air India. The government had earlier projected to raise Rs 1.75 lakh from disinvestment during 2021-22.
The government has 100 percent stake or more than 632.49 crore shares in LIC. The face value of the shares is Rs 10 per share. LIC Public Issue will be the biggest IPO in the history of Indian stock market. Once listed, the market valuation of LIC will be at par with top companies like RIL and TCS. So far, the amount raised from Paytm’s IPO in 2021 was the largest at Rs 18,300 crore, followed by Coal India (2010) at around Rs 15,500 crore and Reliance Power (2008) at Rs 11,700 crore.
