new Delhi. There is good news for the people waiting for the Life Insurance Corporation of India (LIC) IPO. This IPO will come in April instead of March as scheduled. Three officials related to the matter said that in view of the huge volatility in the market due to the Russia-Ukraine war, the government does not want to rush to bring it.
Officials said on the condition of anonymity that the government wants this IPO to get full support of investors. But, in view of the ongoing turmoil in the market, the government wants to bring IPO at a time when there is stability in the domestic market along with the world. The government wants to sell its 5 percent stake in LIC.
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Keeping an eye on market volatility
According to the news of Live Mint, an official said that we will try to bring LIC’s IPO next month, probably by April. We don’t want to delay it any longer. We have till 12th May. At the same time, another official said that compared to the previous month, there has been less volatility in the market last week. However, the sentiments of institutions and retail investors will also have to be monitored before going ahead with the IPO.
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High expectations from retail investors
The official said that we are looking at VIX (India Volatility Index) for certainty in stability. The market will have to be good before we go ahead, but the deadline of March 31 is not good now. Big investors will have to keep an eye on it. But, a major part of the IPO is for retail investors and needs to be fully subscribed. This means that a large number of people will invest in it. Any volatility in LIC shares after listing can frustrate retail investors. That’s why we are avoiding such a situation.
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Government has time till May 12 without new documents
On the other hand, SEBI has time to bring LIC’s IPO by May 12 without filing new documents. An official said that we can bring the IPO by this period based on the documents already filed with the market regulator. If the government does not bring the IPO by May 12, then it will have to submit new documents stating the results of the December quarter. We will soon file a draft red herring prospectus (DRHP) with prices and other details, the official said.
Tags: investment, LIC IPO, Life Insurance Corporation of India (LIC)
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