BENGALURU (Reuters) -India’s market regulator has approved state-owned Life Insurance Corp’s (LIC) initial public offering worth about $8 billion, TV channel ET Now reported on Wednesday, citing sources.
The approval comes in the wake of reports that the initial share sale was set to be delayed to next financial year due to market volatility stoked by the Ukraine crisis.
Reuters reported earlier, citing sources, that bankers advising LIC had pushed the government to defer the launch of the offering that is set to be the country’s biggest yet.
IPO approvals are valid for a period of 12 months from the date of final observation by the Securities and Exchange Board of India, the ET Now report https://economictimes.indiatimes.com/markets/ipos/fpos/lic-ipo-gets-sebi-approval/articleshow/90090172.cms said.
LIC declined to comment when Reuters contacted.
The Indian government has plans to sell 5% of LIC’s stake this month before the fiscal year ends on March 31.
The offering is seen critical to the government’s plan to raise funds for budgeted spending. If the IPO gets delayed, it will add to the growing list of planned offerings being put on hold as the war in Ukraine dampens investor appetite for risky assets.
Global stock markets including India have become extremely volatile after Russian President Vladimir Putin authorised what he called a “special military operation” on Ukraine.
Indian markets have declined nearly 7% so far this year after gaining about 24% in 2021.
(Reporting by Nallur Sethuraman in Bengaluru; Editing by Subhranshu Sahu)
