Bengaluru:
India’s market regulator has approved the IPO of state-owned Life Insurance Corp (LIC) worth about $8 billion, TV channel ET Now reported Wednesday, citing sources.
The approval follows reports that the first share sale would be postponed until next fiscal year due to market volatility fueled by the crisis in Ukraine.
Reuters previously reported, citing sources, that bankers who advised LIC had urged the government to delay 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 Commission of India (SEBI), the ET Now report said.
LIC did not immediately respond to a question from Reuters asking for comment.
The government plans to sell 5% of LIC’s stake this month before the fiscal year ends on March 31.
The offering is seen as crucial to the government’s plan to raise funds for budgeted spending.
Global markets, including India, have become extremely volatile after Russian President Vladimir Putin authorized what he called a “special military operation” on Ukraine.