India’s market regulator has authorised state-owned Life Insurance Corp’s (LIC) $8 billion initial public offering, according to reports quoting sources with firsthand knowledge of the subject.
The permission comes after rumours that the initial share sale would be postponed until the next financial year due to market volatility exacerbated by the Ukraine situation. find out more
Because the information was not yet public, the source could not be identified.
The Life Insurance Corporation of India (LIC) has declined to comment on the Securities and Exchange Board of India’s clearance (SEBI).
Earlier this week, reports quoted sources that bankers advising LIC had pressured the government to postpone the launch of the country’s largest-ever initial public offering.
According to reports, IPO approvals are valid for a period of 12 months from the date of final observation by the Securities and Exchange Board of India.
Despite the possibility of the agreement being delayed, the clearance followed the regulatory process, according to the source.
Before the conclusion of the fiscal year on March 31, the Indian government intends to sell 5% of LIC’s stock. However, no formal notification of the deal’s postponement has been made.
According to reports quoting sources, LIC has yet to receive an updated schedule.
The offering is considered as crucial to the government’s attempt to generate money for planned expenditures. If the IPO is postponed, it would join a growing list of planned offerings that have been halted as investor interest for riskier assets has been dampened by the conflict in Ukraine.
Following Russian President Vladimir Putin’s authorization of a “special military operation” against Ukraine, global financial markets, including India’s, have been very turbulent.
After rising about 24 per cent in 2021, Indian markets have dropped roughly 7 per cent so far this year.
(Adapted from DNAIndia.com)