Is it official that the LIC IPO is being put off to the next year?

It now looks as good as official that the government is likely to put off the proposed LIC IPO to the next fiscal year i.e. FY23. This will impact the disinvestment targets and the government fiscal deficit levels for FY22, but there is really not much of a choice. The war in Russia has just put the IPO beyond the reach of the government for now.

Since India has clearly taken the Russian side despite exhortations from the US, UK and EU, the government is not too certain how FPIs will react. Amidst steep volatility in markets the FPIs outflows have bene more than $25 billion since Oct-21. With little room for failure in the IPO and prestige involved, LIC IPO is obviously a risk that is best not taken in this year.