Due to the Russia-Ukraine crisis, the effect of the bad stock market environment has started showing on the country’s biggest IPO. The government may bring the IPO of Life Insurance Corporation of India (LIC) before May 12. In this, it will now sell 7 percent stake. It is estimated to get Rs 50,000 crore in lieu of this. Earlier it was expected to get 63,000 crores on 5% stake.
Sources say that the government is now preparing to sell seven per cent stake in LIC through IPO instead of five per cent. Its plan was to launch the IPO by March this year, but it was postponed due to the bad market environment due to the Russia-Ukraine crisis. Now it will have to be brought before May 12 because under the old draft, its last date is May 12. If after this period the government brings the IPO of LIC, then it will have to submit a fresh draft.
Earlier: The company was supposed to raise 63 thousand crores at 5 percent stake,
Now: 50 thousand crores can be found at 7 percent stake.