India is reportedly planning to launch the delayed initial public offering (IPO) of state-owned Life Insurance Corporation of India (LIC) next month after market volatility subsides.
Initially, LIC was set to get listed by the end of this fiscal that ends on 31 March 2022. However, it was postponed following uncertainty after Russia launched a military operation on Ukraine.
The launch is now expected in the middle of April, Reuters reported quoting two government officials.
One of the officials was quoted by the news agency as saying: “Most likely, LIC would now be listed by mid-April. We are closely watching the market conditions.”
However, a spokesperson of the Finance Ministry declined to comment on the report.
Notably, the government aims to raise more than $8bn by selling around a 5% stake in LIC. It is expected to become one of the biggest IPOs globally this year.
The insurer has also secured approval from the Securities and Exchange Board of India (SEBI) for the IPO.
The listing will also help the Indian Government to control the increasing fiscal deficit as it seeks to cap it at 6.4% of GDP in the coming fiscal year.
The Reuters report also added that the government will also keep an eye on US Federal Reserve’s plan to tighten monetary policy before launching the IPO.