New Delhi: To meet the disinvestment target for 2021-22, the government has been planning to bring out IPO (Initial Public Offer) in LIC by March this year. But, the impact on the Indian economy due to the Russian invasion of Ukraine, the government is likely to defer the date of the announcement.
A government source said the government will assess the situation before going ahead with LIC IPO since a full-blown war has broken out between Russia and Ukraine.
Union Finance Minister Nirmala Sitharaman while talking to a leading English daily had also hinted that she wanted to bring out IPO in the LIC. "But the current global situation might compel us to give a rethink on this issue. We will have to review the plan pertaining to LIC IPO."
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On the other hand, LIC had put forward its IPO proposal to market regulator SEBI on February 13. In the current financial year, the government to achieve its disinvestment target of Rs 78,000 crore, was planning to sell off its 5% stake in the LIC which would have helped it to procure Rs 63,000 crore from the market. Hence, the deferring of the plan to bring out IPO for LIC, will not help the government to meet the disinvestment target. Though, the government by carrying out disinvestment in some PSUs and Air India had procured Rs 12,030 crore, said sources.
