new Delhi. Investors are eagerly waiting for the Mega IPO of the country’s largest insurance company Life Insurance Corporation of India i.e. LIC, but the market expert said on Sunday that the Russia-Ukraine war (Russia-Ukraine) War), the government can postpone the IPO of LIC for the next financial year, because in the current situation, the interest of fund managers regarding the issue has decreased.
The government was considering selling 5 per cent stake in LIC this month, which was expected to fetch around Rs 60,000 crore to the exchequer. The IPO was also expected to help meet its disinvestment target of Rs 78,000 crore for the current financial year.
Arijit Malakar, Head of Retail Equity Research, Ashika Group said, “The current geopolitical scenario is putting pressure on the global equity markets due to the ongoing conflict between Russia and Ukraine. Indian markets have also reacted negatively to this and have broken nearly 11 per cent from their all-time highs. Thus, the current market volatility is not conducive for LIC’s IPO and the government deferred the issue to the next financial year. might.”
Tanushree Banerjee, Co-Head of Research Equitymaster said that the weak market sentiment is disappointing for LIC IPO. In such a situation, there is a possibility of postponement of this IPO.
Atanu Agarwal, Co-Founder of Upside AI, said that in the face of widespread uncertainty, there is always a sell-off in emerging markets. This means that the liquidity in the domestic markets is decreasing.
TradeSmart President Vijay Singhania said that considering the current situation, it is not a big deal for the government to postpone the IPO for a few months. However, this will worsen the budget figures for the financial year 2021-22.
Tags: IPO, LIC IPO
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