The central government is waiting for the stock market, which has become volatile in the wake of the Russian invasion of Ukraine, to stabilise before going ahead IPO of insurance behemoth LIC, official sources said. This has triggered prospects of the issue being deferred for now.
Since Russia’s invasion, uncertainty has gripped the country’s biggest IPO and plans to list it before the end of the financial year on March 31 seem to be in jeopardy. Sources said the government has time until May 12 to unveil the IPO on the basis of the documents filed with the stock market regulator Sebi. The government had filed the draft red herring prospectus with Sebi on February 13 and sources said all eyes are now on the state of the stock market and any listing would depend on when the volatility reduces.
The sources said authorities are watching the volatility index, which had spiked sharply after Russia’s invasion of Ukraine, and is currently ruling at around 25.3 and the view within the government is that it should settle at around 15 levels to take a call on the timing of the LIC IPO.
The markets have been choppy and the apprehension is that it may have a major impact on the LIC listing and hurt the Centre’s plan to raise close to £7 billion from the IPO.
