MUMBAI: Insurance behemoth LIC has continued to hold roadshows, seven to eight daily, as part of scheduled presentations for potential investors. This indicates that LIC is going ahead with its IPO as of now.
According to sources, the government was planning to get around 180 institutional investors on board given the size of the issue. As a result, the corporation’s investment bankers had planned for a record number of presentations in the second half of February. It is speculated that the issue will open in the second week of March and list before the end of the month.
LIC chairman MR Kumar had said on Monday that lot of interest has been generated in the IPO. The corporation is expanding the potential retail market by getting policyholders to link their PAN number and ensuring that policyholders have a demat account, The corporation is targeting the opening of 1 crore demat accounts among its policyholders.
“We would like to get this done this fiscal. In spite of what is happening outside, let us hope it settles down, we are going to get this done,” said Kumar. He added that the corporation was keeping a close watch on the global situation. A day later, after Russia recognized rebel regions of Ukraine as independent, FM Nirmala Sitharaman reiterated that the government was keen on the IPO concluding during the current financial year.
Since these announcements took place Russia has launched a full-scale invasion of Ukraine. The ensuing uncertainty has resulted in the Indian markets crashing in line with its global counterparts. The sensex closed 2702 points down on Thursday.
Bankers said that while there was no geopolitical risk to India out of the situation in Ukraine, there were macroeconomic risks. The immediate risk was the flight of foreign capital resulting in loss of equity valuations as well as a drop in the exchange rate. Secondly, there was a risk that with higher crude prices likely to fuel inflation the central bank would be forced to raise rates faster.
According to sources, the government was planning to get around 180 institutional investors on board given the size of the issue. As a result, the corporation’s investment bankers had planned for a record number of presentations in the second half of February. It is speculated that the issue will open in the second week of March and list before the end of the month.
LIC chairman MR Kumar had said on Monday that lot of interest has been generated in the IPO. The corporation is expanding the potential retail market by getting policyholders to link their PAN number and ensuring that policyholders have a demat account, The corporation is targeting the opening of 1 crore demat accounts among its policyholders.
“We would like to get this done this fiscal. In spite of what is happening outside, let us hope it settles down, we are going to get this done,” said Kumar. He added that the corporation was keeping a close watch on the global situation. A day later, after Russia recognized rebel regions of Ukraine as independent, FM Nirmala Sitharaman reiterated that the government was keen on the IPO concluding during the current financial year.
Since these announcements took place Russia has launched a full-scale invasion of Ukraine. The ensuing uncertainty has resulted in the Indian markets crashing in line with its global counterparts. The sensex closed 2702 points down on Thursday.
Bankers said that while there was no geopolitical risk to India out of the situation in Ukraine, there were macroeconomic risks. The immediate risk was the flight of foreign capital resulting in loss of equity valuations as well as a drop in the exchange rate. Secondly, there was a risk that with higher crude prices likely to fuel inflation the central bank would be forced to raise rates faster.
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