E-commerce logistics company, Delhivery is likely to delay its initial public offerings (IPOs) by the first week of March, Moneycontrol reported citing sources. According to the report, the reason behind a delay in the IPO is the fear of a highly volatile market and the Life Insurance Corporation (LIC) IPO which is scheduled for the first week of February this year.
The Soft-bank backed logistics firm had filed documents for IPO in November last year and had received Securities and Exchange Board of India’s, (SEBI’s) approval earlier this month for IPO. The company is planning to raise $1 billion at a valuation of $6 billion. Meanwhile, LIC’s IPO is touted to be the biggest IPO in India, as the government is aiming to raise Rs 1 lakh crore by selling shares. However, according to Outlook Business sources, the government is jittery about the LIC IPO and is likely to push it to mid-March this year. If the stock market volatility continues till then, the government may even push the LIC IPO to the next financial year.
The development also comes at a time when both Indian and global financial markets are witnessing high volatility amid concerns regarding geopolitical tensions between Russia, the USA and Ukraine, the US Federal Reserve’s indication of an interest rate hike and the Omicron variant of Covid-19.
Outlook Business had earlier reported how new-age IPOs are facing the heat of a highly volatile market. Vishal Waugh, research head at Bonanza Portfolio, a broking firm, told Outlook Business, "The emerging markets will feel the pressure as liquidity gets eroded. Foreign institutional investors have been net sellers in the Indian market and the US Fed’s increasingly hawkish stance is expected to continue putting selling pressure in Indian markets."