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Wrong Time To Bring LIC IPO, Says P Chidambaram -By ASC


Former finance minister P Chidambaram has questioned the timing of LIC’s IPO

Former finance minister P Chidambaram on Wednesday questioned the timing of the Life Insurance Corporation’s (LIC) initial public offering (IPO), wanting to know the reason behind the Government’s “desperation” to issue it at the start of the financial year.

Speaking to AGRASMARTCITY, Mr Chidambaram, when asked about his views on the LIC IPO, cited as one of the country’s biggest public issues, said, “it is the wrong time to do an IPO. First you reduced the size of the IPO and also have lowered the offer price. Both show that this is not the best time to bring in an IPO. ”

He wondered why the Government was desperate to bring it in after it missed the March 31, 2022 deadline.

“They claim direct tax collection is strong, so is it desperate to bring in an IPO in the first month of the new financial year? There is usually no shortage of money in April and May for the new fiscal and the government has funds at this time of year. If you are short of resources, you can do it later. I think it is the wrong time to do an IPO, ”the former finance minister said.

LIC’s IPO is expected to open on May 2 for major investors and from May 4 to May 9 for the public, the insurance company confirmed earlier in the day at its press conference.

It will be in the Rs 902-949 price range, with a Rs 60 discount for policyholders and a Rs 45 discount for retail investors and employees.

India’s largest insurer LIC is likely to be listed on the stock exchange on May 17, a week after its mega IPO closed.

Secretary of the Department of Investment and Public Asset Management (DIPAM) Tuhin Kanta Pandey said the listing of LIC was part of the government’s long -term strategic vision and would increase the value of the corporation in the long run.

“This (LIC IPO) is of the right size, taking into account the capital market environment and will not stifle capital supply given the current market environment,” Mr Pandey said on Wednesday.

Even after the size decreases by about Rs 20,557 crore, LIC’s IPO will be the largest initial public offering ever in the country, he said.

Agrasmartcity

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