What is the final take on the LIC IPO? Is it happening in March or will it only happen in next financial year?

The mega IPO of LIC is all set to be delayed till the next financial year amidst market swings triggered by Russia’s invasion of Ukraine. Mostly, the government may wait till the SEBI approval comes in and that is expected to happen in the coming week, probably on Monday itself. Once that is done, the government is expected to declare the final date, either in this month or in the coming month of April, based on the conditions in Ukraine.

The reports are that bankers and officials are preparing to shift the listing of the state-run insurer to after the current fiscal year. Even if the issue happens this year, they may look at a listing of next year. However, practically, they would want the FPI flows to be positive and robust so that the issue of the size of LIC can be easily absorbed. In the roadshows, apparently most of the investors have been wary of crude prices and the Russia situation.

In a very cryptic manner, the Indian Finance Minister Nirmala Sitharaman had indicated that she would not mind taking another look at the timing of the LIC offering. Clearly, the market compulsions will rule the roost at the end of the day. The deferment could be another setback for India as the disinvestment revenues will end up grossly short of the targeted amounts. It would not be a good idea if even Rs.78,000 crore target is not met.