The government is likely to cut the initial public offering of Life Insurance Corporation (LIC) by 40 per cent to Rs 30,000 crore as the Russia-Ukraine war continues to dent the global supply chain as well as dampen the global economy, Bloomberg reported citing sources.
Touted as India’s biggest IPO, the government was earlier planning to sell its 5 per cent stake in LIC to raise Rs 63,000 crore. The LIC IPO was earlier supposed to be taken place on March 11, to meet the disinvestment target of Rs 78,000 crore for FY2022. However, the Russian invasion of Ukraine derailed the LIC IPO. The report said that now the stake sale could be a little over 5 per cent. Business Standard had last week reported that the government’s stake sale could be as much as 7 per cent.
LIC IPO is likely to place within the next two weeks at a valuation of Rs 6 lakh crore. Meanwhile, the government’s offer for sale including the draft herring prospectus expires on May 12.