Finance Minister Nirmala Sitharaman on Tuesday, 22 February, said that the government has decided to go ahead with the Life Insurance Corporation (LIC)'s initial public offering (IPO). However, she added that the government is "equally worried if the market situation is conducive," reported The Indian Express.
This comes at a time when there are concerns over the IPO being affected due to the ongoing tensions between Russia and Ukraine. Earlier on Tuesday, due to threats of crippling sanctions by the United States (US) against Russia, Brent crude went above 99$ a barrel.
Speaking at a press conference in Mumbai, she also reportedly said that "there is a buzz and interest for LIC IPO" in the market ever since LIC draft red herring prospectus (DRHP) was out. Hence, she said, the government is moving ahead with it.
"I think the way it is crafted, it has generated a lot of interest," she said as per NDTV.
Background
LIC is stepping closer to becoming one of the largest companies in India, with the government selling a five percent stake in the insurance giant for the first time in an upcoming IPO.
The household insurer name on 13 February filed its draft red herring prospectus or DRHP with markets regulator SEBI, which states that it will be offering 31.62 crore in equity or 5 percent of the company to the Indian market in its upcoming IPO.
This move is in line with the Centre’s disinvestment plan to fill its coffers drained by the pandemic. It was also mentioned in the recent budget speech by Finance Minister Nirmala Sitharaman.
(With inputs from The Indian Express, NDTV)
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