The government can postpone the Mega Prime Mega (IPO) General Insurance General Offer (IPO), because the government tends to hold a meeting to rejust the IPO time considering the increasing Russian-Ukrainian war, source to CNBC TV18.
The government continued Roadshows for public offering, told a government official. LIC IPO is considered as the largest public offering by any Indian company, and is mentioned as a global-eyed public list.
A government official in knowledge about developments has said that a list of LIC lists will be held “this week.” Finance Minister Nirmala Sitharaman has “stated the position of the government” about this issue, the official said, referring to his statement during a recent interview with a Hindu business line, where he suggested that the global situation that emerged could guarantee towing the IPO time.
“Ideally, I want to continue because we have planned it for some time based on Indian considerations,” Sitharaman told the newspaper, added that “if global considerations guarantee that I need to see it, I objected to seeing it again”.
LIC IPO: Impact of the Delay
Conflicts in Eastern Europe have had an impact on the global stock market, including BSE Sensex and NIFTY NSE, and international oil prices. Some experts have warned that the global inflation rate can rise due to Russian invasion to Ukraine.
The review can have an impact on the time of Mega’s general offer, the largest in India, which is the largest part of the country’s asset sales program aims to study the budget deficit this year until March 31, 2022.
Furthermore, LIC IPO delays can affect bond prices and will also have a negative impact on the Rupee, which is shaken under pressure due to Russian invasion to Ukraine.
LIC IPO: What do Analysts Say?
Commenting on the possibility of delays in Mega IPO India, Dr. VIJIAKUAR VK, Head of Investment Strategy in Geojit Financial Services, told News18.com: “The weak global market environment today is not an ideal setting for the size of Mego from LIC size. The government tends to delay it to FY23. Delays are better than clamping IPOs. “
LIC IPO: Stage set for Market Debut
Last week, the Union cabinet chaired by Prime Minister Narendra Modi was permissible to 20 percent of foreign direct investment (FDI) below the automatic route in the IPO bound with the aim of facilitating the worship of the country’s largest insurance company.
Setting the stage for the largest public offering in the country, Life Insurance Corporation on February 13 submitted a draft paper with a capital market regulator for 5 percent of the government’s shares for estimated RS 63,000 Crore.
According to the Red Herring Prospectus Draft (DRHP), the embedded value of LIC, which is a measure of the value of consolidated shareholders in the insurance company, has been set around Rs 5.4 lakh Crore on September 30, 2021, by international actuarial company Milman adviser.
LIC public problems will be the biggest IPO in the history of the Indian stock market. After being registered, the LIC market assessment will be proportional to top companies such as RIL and TCS.