Ukraine crisis may dampen foreign investor interest in LIC public issue

Ukraine crisis may dampen foreign investor interest in LIC public issue

A barrage of sanctions, including ejection of several banks from financial messaging platform SWIFT, has led to tightening of funds for investors with interests in the Russian markets





March 07, 2022 / 10:51 AM IST





LIC is yet to decide on the offer price for the listing, but the IPO is poised to be the largest in Indian stock market history and is crucial for the Centre to meet its Rs 78,000 crore divestment target for FY22



Sanctions imposed on Russia for its invasion of eastern Ukraine will likely dampen participation from foreign institutional investors (FIIs) in the coming initial public offering by LIC, according to a report published in Mint.

Two sources told the paper that the sanctions have become an “issue for global investors”.

Russia has been faced with a barrage of united sanctions from the US and Europe for its movements in Ukraine, including ejection of several banks from financial messaging platform SWIFT, leading to tightening of investor funds.

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One source pointed out that US investors with interests in the suffering Russian market are “not in a position to withdraw any securities and invest them in something like