Nirmala Sitharaman has said that the government will conduct IPO of LIC
Finance Minister Nirmala Sitharaman on Tuesday emphasized that the government is proceeding with the Initial Public Offering (IPO) of Life Insurance Corporation (LIC) because of “the buzz in the market and the care”.
At the same time, on a cautious note, she said that the government is worried whether “the market situation is favorable (for it)”.
“There’s a buzz in the market and there’s interest in the LIC IPO. We’re moving on with it,” said Ms. Sitharaman. However, she added that “we are equally worried if the market situation is favorable”.
The Finance Minister made these comments during a press conference in Mumbai on the last day of his two-day visit to the city, today.
Sitharaman’s comments come amid escalating tensions between Russia and Ukraine. The prevailing situation in Eastern Europe has had a negative impact on markets around the world. Oil prices have rallied, breaking above $99 per barrel at the beginning of the day.
The draft red herring prospectus (DRHP) for the LIC’s IPO was released on February 13. The offer is for the sale of up to 316.25 million shares or about 5% of the government’s holdings. at LIC.
The Finance Minister said the issuance of the DRHP has spurred interest in the IPO.
“I think the way it was handcrafted, it generated a lot of interest,” she added.
On the first day of her visit to Mumbai, Ms. Sitharaman met with stakeholders from financial markets, trade and industry to discuss the union budget.
Earlier, Reuters reported that potential investors in LIC’s IPO were seeking assurances from the company’s management that they would not sacrifice their interests to achieve goals set by the government. , the controlling shareholder of the company proposed.
During the virtual roadshow of India’s largest ever public listing, LIC management and IPO banks were questioned about investments in the process, the Reuters report said. insurers’ past and their quality, the Reuters report said.
Potential conflict of interest issues are at the heart of IPO rollouts that began last week and are expected to run through the end of the month, the source said.
