LIC IPO: Due to the Russo-Ukraine war, foreign investors wait and see.
According to the source, if the situation arises like bringing an IPO after May 12, then the embedded value and results will have to be changed. However, sources said that if the IPO does not come in March, the last week of April or the first week of May may come. Roadshow completed after DRHP. The government and LIC have also completed preparations. However, the government does not want to take any risk with market volatility.
Foreign investors wary of Russia-Ukraine war
In fact, the situation has changed from Russia to Ukraine. Up to 20 per cent FDI investment has also been approved in LIC’s IPO. Then wait for foreign investors. The government is also wary of this. Therefore, it is expected that LIC’s IPO deadline may be extended a bit.
This means year # LIC It has no IPO
In the current market situation #LICIPO Delay is possible
Now LIC’s IPO is expected to come by April-May
#Russia Ukraine war Foreign investors in the ‘wait and watch’ position
– Zee Business (ZeeBusiness) March 14, 2022
DRHP received approval on 13 February
SEBI approved the draft document (DRHP) filed by LIC on February 13, 2022. This has cleared the way for selling shares. This will help the government raise Rs 60,000 crore to meet its investment target for the current financial year. According to DRHP, under the IPO, the government will sell 316 million equity shares of LIC or its five percent stake in the company. If it does not sell in March, the government will fall short of its revised investment target for the current fiscal year.
It will be the biggest IPO
This public issue of LIC will be the largest IPO in the history of Indian stock market. After that, LIC’s market value will be equal to that of top companies like Reliance and TCS. Through the IPO of Life Insurance Corporation (LIC), the government aims to raise more than Rs 60,000 crore in the current financial year to meet its revised investment target of Rs 78,000 crore.
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