LIC IPO Set To Be Delayed, Sale To Happen Next Year: Report

LIC IPO Date: LIC IPO is set to be delayed into the next financial year (FY22-23) due to high market volatility amidst the Russia Ukraine war.

New Delhi: Russia Ukraine war may act as a major dampener for the spirits of Indian retail investors. According to a report by Bloomberg, the LIC IPO is set to be delayed into the next financial year (FY22-23). The report quoted people aware of the matter without naming them.

According to the report, the formal announcement of the decision may be announced anytime next week. If the situation eases, the LIC IPO may be listed in April 2022. Earlier this week, Finance Minister Nirmala Sitharaman said that the government might relook at the listing of the LIC IPO due to high market volatility amidst the Russia Ukraine war.

The report stated that many anchor investors and fund managers have been sceptical about the IPO in these testing times. The share markets in India have been constantly falling.

According to the report, since the start of tensions on February 18, the global share markets have lost over $3 trillion in market cap. LIC will be the biggest company impacted by the war.

The government of India was planning to reduce their fiscal deficit with the proceedings from the LIC IPO. This seems unlikely in this financial year. Originally, they were planning to raise Rs 654 billion from the listing. The government was also planning to meet its disinvestment target of Rs 78,000 crore with the listing of the biggest life insurer in India.

The policyholders and employees of LIC were especially interested as they have been given special reservations in the shares, along with discounts on the share price. It seems like they will have to meet a little more now.