new Delhi. In the midst of the Russia-Ukraine War, bad news has come for investors. The government, apprehensive of the ongoing volatility in the market, can postpone the IPO of LIC.
Sources related to the matter said that the government, which is still completing the preparations to launch the IPO by the end of March, may intend to release it in the next financial year. The government will hold a meeting this week to take a final call on the IPO, in which it will be decided whether the listing of LIC will happen in March this year or not. An official related to the matter has said that in view of the global situation, the timing of the IPO can be changed.
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Sitharaman also indicated
Finance Minister Nirmala Sitharaman had also said recently that although I would like to go according to the earlier plan, because it depends on the Indian market. But, if the global environment deteriorates, then the timing of IPO can be reconsidered. The company has submitted DRHP to the market regulator SEBI on February 13 itself for the IPO.
Big investors are putting pressure on the government
Big investment banks putting money in LIC’s IPO are pressurizing the government to postpone the listing. He says that due to the Russo-Ukraine war, there is still volatility in the market, which will also affect the performance of the IPO. If it is postponed, then after stability comes, the confidence of the investors will also increase even more, which will benefit.
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Foreign investors can also make distance
A banker working on LIC’s IPO said that foreign investors are currently reviewing their portfolios amid market volatility. At such a time, they can distance themselves from this IPO, which will also affect the performance of the shares.
Tags: IPO, LIC IPO
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