The government is definitely concerned about foreign investors, but, it believes that there is no one opportune time to launch an IPO.
The conditions prevailing in the stock market today may also change tomorrow. That’s why the government has made up its mind to launch LIC IPO soon.
The government has been confused for a long time regarding the launch date of Life Insurance Corporation of India’s IPO. Due to the changed circumstances of the Russo-Ukraine war, the government postponed its launch for some time. Then came the news of LIC IPO being launched in April 2022. However, nothing has been clarified by the government about this yet.
Now quoting government sources, Live Mint has written that the Life Insurance Corporation of IndiaIPOThe government has made up its mind to launch this month itself, ie in April itself.
The government feels that now there is not as much uncertainty in the Indian stock market as it was when the Russo-Ukraine war started. Along with this, the global situation has also become somewhat comfortable.
The government believes that the Indian insurance market has remained untouched by global factors such as rising oil prices, spurt in raw material rates and the effects of the Russo-Ukraine war.
A source with knowledge of LIC IPO said that the government is definitely concerned about foreign investors, but, it believes that there is no one opportune time to launch the IPO. The conditions prevailing in the stock market today may also change tomorrow. There may be some other big event in the future.
In view of all this, the government has now made up its mind to launch LIC IPO soon. The decision regarding the IPO launch will be taken in due course. This will happen because the government has now made up its mind to launch it as soon as possible. However, the Finance Ministry has not responded to the query regarding the IPO launch.
Government may sell more stake
The government had initially said to sell its 5 percent stake through a public issue (IPO) of the Life Insurance Corporation of India. But, now the news is coming that the government is planning to sell the stake of LIC up to 7.5 percent.
But, the screw is that keeping in mind the interests of the investors, the government can sell only between 5.5 to 6.5 per cent. The government will have to file share sale documents to sell more than 7.5% stake.
Sources say that merchant bankers are talking to investors about this. The government will take the final decision only on the basis of the attitude of pension funds, sovereign funds and other investors and the anchor book prepared by the bankers.
After assessing the situation arising out of the Russo-Ukraine war and its impact on the stock markets, discussions have started on increasing the size of the IPO of this country’s largest insurance company to more than 5%.
