However, bankers advising LIC had pushed the government to defer the launch of the stock offering. IPO approvals are valid for a period of 12 months from the date of final observation by the Securities and Exchange Board of India.
Mumbai:
India’s market regulator has approved state-owned Life Insurance Corp’s (LIC) initial public offering worth about $8 billion.
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.
However, bankers advising LIC had pushed the government to defer the launch of the stock offering. 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 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.
Global markets including India have become extremely volatile after Russian President Vladimir Putin authorised what he called a “special military operation” on Ukraine.