LIC IPO: Government will benefit, but policyholder bonus will be scissored from IPO

LIC IPO: Russia-Ukraine war may spoil the government’s game, foreign investors may pull back from IPO


new Delhi. The Russo-Ukraine war may spoil the government’s game on the IPO front of Life Insurance Corporation of India (LIC). Widespread sanctions against Russia and the withdrawal of several Russian banks from the financial messaging platform SWIFT may reduce the participation of foreign institutions in the Life Insurance Corporation of India (LIC) IPO.

Two government officials said that due to investments in the Russian market, American investors are not in a position to withdraw any security and invest in something like LIC. Hence, it has become an issue for global investors. In such a situation, foreign investors can pull their hands back by investing in LIC IPO.

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Question on IPO success

The government is still planning to sell a 5% stake in the country’s largest insurer by the end of March. With this, at least Rs 75000 crore can be raised. However, the timing and success of the IPO have been questioned due to the Russo-Ukraine war.

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Government does not want delay in IPO

An official said that rising crude oil prices due to the current crisis are affecting inflation and volatility in the Indian markets. The government is also taking care of this regarding the timing of the IPO. The government also does not want to delay the IPO as the delay may lose the momentum it has gained in negotiations with potential investors and bankers. Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM), says that the government will decide on the timing of LIC IPO keeping in mind the interest of investors.

15 lakh crore valuation target

Pandey says some unforeseen incidents are happening. We are closely monitoring the market and certainly whatever the government will do, it will be in the interest of the investors and the IPO. He said that the government intends to list LIC by March 31, but the war in Europe has created a different situation. So we are watching the situation closely.

Tags: LIC IPO, Life Insurance Corporation of India (LIC), Russia ukraine war


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