LIC IPO Date: The most-awaited IPO has been postponed owing to the rising Russia Ukraine tensions. The share markets across the globe have been highly volatile amid rising oil and commodity prices due to the war.
New Delhi: Life Insurance Corporation (LIC) of India will most likely launch its LIC IPO in April 2022 instead of March 2022, according to a report by Mint. The most-awaited IPO has been postponed owing to the rising Russia Ukraine tensions. The share markets across the globe have been highly volatile amid rising oil and commodity prices due to the war
According to the report, the officials said that the government is ‘closely’ monitoring the market volatility. The interest of the investors will play a key role in the launch of the LIC IPO. It must be noted that VIX or India Volatility Index is used for watching the volatility in the markets.
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Also, according to latest media reports, the government has till May 12, 2022, to launch the LIC IPO. After that, they will be required to get the nod of the Securities Exchange Board of India (SEBI) again. The SEBI had approved the draft papers of LIC IPO earlier this week.
The markets have gotten relatively more stable in the past week. However, the investors’ sentiment is still low. It will have to be considered before launching the biggest IPO of India ever.
For the unversed, the government is eyeing to sell 5 per cent of its stake in LIC for Rs 75,000 crore. A special reservation of 5 per cent shares has been kept for the policyholders and the employees of the company each. Along with that, policyholders will also get a discount of 10 per cent on the share price.
The policyholders need to link their PAN cards with the policy to avail themselves of the benefit. According to Mint, over 70 million policyholders have already linked their PAN cards with the policyholder.
The shift in the timeline will also most likely impact the government’s disinvestment targets for the year 2021-22. In the Budget 2022, Finance Minister Nirmala Sitharaman lowered the disinvestment target of the current year to Rs 78,000 crore. The earlier target was more than double this target.
