BENGALURU (Reuters) -The initial public offering of India’s state-run Life Insurance Corp (LIC) is set to be delayed to next financial year due to market volatility triggered by Russia’s invasion of Ukraine, Bloomberg News reported https://bloom.bg/3tw2Hgn, citing sources.
In what will be the biggest stock offering in India, the government has plans to raise about $8 billion by selling 5% of LIC’s stake this month before the fiscal year ends on March 31.
Bankers and officials are preparing to shift the listing of the insurer and a formal announcement could be expected this week or next, Bloomberg reported.
The sale may happen as soon as April if market volatility eases, the news agency said, citing one source.
The insurance giant’s underwriters saw muted interest during early meetings with potential anchor investors and many fund managers have been wary of making major commitments during such market volatility, the report added.
LIC declined to comment when Reuters contacted.
Bankers advising LIC have pushed the government to defer the launch of the stock offering, Reuters reported this week, citing sources.
Reuters had earlier reported that the public offering of LIC’s shares was expected to open for anchor investors on March 11.
The offering is seen critical to the government’s plan to raise funds for budgeted spending.
Global markets including India have become extremely volatile after Russian President Vladimir Putin authorised what he called a “special military operation” on Ukraine.
Indian markets fell more than 2% early Friday, touching their lowest since early-August, and were set for a fourth consecutive weekly loss.
(Reporting by Nallur Sethuraman and Chandini Monnappa in Bengaluru; Editing by Subhranshu Sahu)
