Uncertainty over LIC listing delays IPOs of 3 more PSUs

Uncertainties over the Life Insurance Corp. of India's (LIC's) initial public offering (IPO) are likely to delay the Centre's plans to list three other state-run companies, Export Credit Guarantee Corp. of India (ECGC), WAPCOS and National Seeds Corp. Ltd, according to a senior government official.

While the LIC IPO was planned for March, the volatility in the Indian stock market amid the escalating Russia-Ukraine crisis prompted the Centre to postpone it to April-end or early-May, Mint had reported earlier.

This decision will have a cascading effect on the government's listing plans for the other public sector enterprises, which, in turn, may affect its divestment target for FY23, the official said, seeking anonymity.

The initial plan was to start the listing processes for the three public sector enterprises in the first quarter, soon after LIC's market debut, but with the delay in the insurance behemoth's IPO, the smaller IPOs have taken a back seat, he added.

Queries sent to finance ministry did not elicit a response as of Thursday.

Department of investment and public asset management (DIPAM) secretary Tuhin Kanta Pandey said after the Union budget announcements in February that the Centre will begin the listing process of the three public sector enterprises, starting with WAPCOS, wherein the government is likely to offload a 25% stake.

The department had already floated tenders for engaging a registrar and an advertising agency for the divestment process in February 2021.