Mumbai: The state owned Life Insurance Corporation (LIC) has got approval from the Securities and Exchange Board of India to go for initial public offer (IPO). With the approval, the government is aiming to raise around Rs 60,000 crore, by the issuance of LIC shares.
The government, however, will decide when it will launch the IPO, given the equity market oscillation as the impact of the Russian war in Ukraine, which has an adverse impact on investor sentiment worldwide.
Meanwhile, the Finance Minister Nirmala Sitharaman, who had earlier announced the government's plan to go ahead with the LIC IPO this month, is likely that she would consider the global market sentiments.
Since Russian invasion of Ukraine on February 24, the equity markets took a nosedive across the world, the Indian equities worth a net of Rs 30,141 crore were sold in March alone, the net outflow since January 1, 2022 now amounts to Rs 99,036 crore.
There are also fresh concerns over geopolitical developments in Russia-Ukraine and its impact on markets, FPI outflow over the last couple of months, volatility in markets and March not being a right month for a large public issue.