The Modi government had earlier set the March deadline for LIC IPO, IPO documents have been filed in February.
LIC IPO May Get Delayed Due To War in Ukraine: The situation created around the world due to Russia’s attack on Ukraine can also affect the IPO of Life Insurance Corporation (LIC IPO). Finance Minister Nirmala Sitharaman has indicated that if such a situation arises due to the rapidly changing international situation, then the government may reconsider the timeline of LIC’s IPO. Sitharaman has said this in a recent interview.
Finance Minister Sitharaman has said in an interview to Businessline, “Although I would like to proceed according to the schedule in the matter of this IPO, because for this we have prepared well in advance keeping in mind the Indian conditions. Is. But if the need arises keeping in mind the international situation, I am ready to reconsider it also.”
We have to give clarification to the whole world: Finance Minister
When Finance Minister Nirmala Sitharaman was asked whether the delay in bringing the IPO of LIC will not affect the government’s annual disinvestment target? So he said that “If a promoter of the private sector has to take such a decision, then he has to give clarification only to the board of his company. But I will have to explain this to the whole world.”
Government’s disinvestment target will be affected
If the government reconsiders the situation, then the timeline of LIC IPO may be affected. Earlier the government had fixed the March deadline for this. Accordingly, the documents of the IPO have also been submitted on February 13, in which the embedded value of LIC was estimated at Rs 5 lakh 40 thousand crore ($ 71.7 billion). In fact, the biggest part of the Modi government’s plan to sell government assets to meet its budget deficit during the financial year ending March 31, 2022, is to come from LIC’s IPO.
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