Government to meet this week over LIC's IPO launch amid Ukraine-Russia war: Sources
India Today
The war between Ukraine and Russia has forced officials to review and prepare a plan for the launch of the initial public offering of Life Insurance Corporation, sources in the Finance Ministry told India Today TV.
The government will meet this week to review and prepare a plan of action for the launch of the initial public offering (IPO) of Life Insurance Corporation (LIC), sources in the Finance Ministry told India Today TV. The war between Ukraine and Russia has prompted officials to reassess the markets before launching the country's biggest-ever public offering.
The Indian government is closely watching the situation unfolding in Ukraine and any impact it may have on LIC's IPO plan, the sources further said, adding, the government may reschedule the launch keeping in mind the expectations on global investors.
Finance Minister Nirmala Sitharaman, in an interview Hindu BusinessLine, said that the Centre is likely to review the timing of LIC's IPO launch amid the ongoing war between Russia and Ukraine.
"When I last commented on this matter, the tension was building up. Now there's a full-scale war. Therefore, I need to go back and review the situation," she told the business publication.
"Ideally" the government would like to go ahead with the much awaited mega IPO. However, if global circumstances demand, it won't hesitate to look into it again, she said.
The war in Eastern Europe has impacted global stock markets, including the BSE Sensex, NSE Nifty, and international oil prices. Several experts have cautioned that global inflation levels may go up due to Russia's invasion of Ukraine.
Last week, the Union Cabinet chaired by Prime Minister Narendra Modi permitted up to 20 per cent foreign direct investment (FDI) under automatic route in IPO-bound LIC with the aim of facilitating disinvestment of the country's largest insurer.
