InvestorQ : Is it true that the government is putting off the LIC IPO to next financial year?
Lavanya Subramanian made post

Is it true that the government is putting off the LIC IPO to next financial year?

Anamika Sodhani answered.
2 years ago

While there is no official confirmation, it now looks reported very unlikely that the LIC Ipo could happen in the current financial year before March 2022. This is likely to be a big setback for the government disinvestment collections in FY22. It was counting on the LIC IPO to contribute nearly Rs.100,000 crore out of the total annual target of Rs.175,000 crore for financial year 2021-22. That looks like a far cry without the LIC IPO happening.

One of the major reasons for the likely postponement of the LIC IPO is due to persistent delays in the valuation. Firstly, Milliman Advisors had consistently put off the actuarial valuation date for a long time citing complexity in the LIC valuation process. That has not helped matters at a time when the DIPAM was racing against time. DIPAM Secretary, Tuhin Kant Pandey, appears to be optimistic about LIC IPO by March 2022, but it looks very tough.

Most of the government bureaucracy insiders and experts are increasingly veering around to the view that it would be impractical to expect the LIC IPO process to be completed by March this year. That is because, even after the valuation process was completed, there would still be regulatory gaps to be filled up and approvals to be sought. LIC IPO needs to be finally vetted by SEBI and IRDA. Clearly, FY23 looks like a more practical target for LIC IPO.