The massive uncertainty in global and domestic financial markets has emerged as a huge worry for the country’s biggest IPO through which the government aims to raise close to Rs 70,000 crore. Finance minister Nirmala Sitharaman had also recently said the government won’t mind having a relook at LIC IPO’s timing if global considerations warrant that, but ideally the plan was to go ahead with it since it had been planned for some time purely on Indian considerations.
The IPO of the insurance giant is the centrepiece of the government’s asset sales programme and the Centre had mounted a huge exercise to complete its successful listing. The war in Ukraine has also posed a risk for the go- vernment’s broader privatisation drive, including key sales of oil marketing major BPCL, Shipping Corporation of India and BEML.
Earlier, speaking at a function, Pandey said the aim of the government was to come up with the LIC IPO within the current financial year but pointed to the crisis, following the situation in Ukraine. “That has always been our desire, but now with this crisis which has come up, it is also a very dynamic situation. We have to be watchful and make our strategy accordingly,” said Pandey.
Russia’s invasion triggered huge worries about global growth and inflation. Policymakers at home are finalising a strategy to deal with the impact of the war on inflation and sharp surge in global crude oil prices against the backdrop of massive disruption of supply chains.
