Government may review LIC IPO plan amid Russia-Ukraine crisis | Markets News

New Delhi: The government may go for a review of the plans for the Life Insurance Corp of India (LIC) IPO set for this month amid the Russia-Ukraine crisis, which has shaken global markets with India.

Referring to the timing of the LIC summary, Finance Minister Nirmala Sitharaman in an interview with the Commercial Line newspaper said “If global opinion supports that I need to look, I will not mind looking again.” (Read also: Can lower policy liabilities apply to IPO?)

Although FM said the government hopes to continue with the list as planned, however it may have to reconsider the situation because Russia has invaded Ukraine.

“… Now, there is a full war. Therefore, I need to go back and assess the situation,” Sitharaman added. (Read also: Parliament allows up to 20% FDI in state property insurance)

He added that the pressure of meeting revenue streams to sell government shares in companies in the current fiscal year ending March 31 will not be a factor for the timeline of the LIC index.

“No, I do not think that is the factor… I have to explain it to the whole world,” he said.

Last week, the Coalition approved 20 per cent foreign direct investment (FDI) under the auspices of the IPO-bound LIC. However, the existing FDI policy does not regulate any specific provision for foreign investment in the LIC, which is a legal entity established under the LIC Act, 1956.

The LIC in February launched joint ventures with the capital city of Sebi for sale of 5 per cent by the government for an estimated Rs 63,000 crore.

Considered to be the friend of the nation’s largest public ever, an IPO of more than 31.6 crore shares or 5 per cent of the government is likely to hit the D-street in March and officials say and behemoth insurance policyholders will receive a discount on land charge. . The LIC IPO will be the largest IPO in the history of the Indian stock market and once listed the LIC market price will be comparable to high profile companies like RIL and TCS.

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