Can India’s LIC public offering narrow the country’s budget deficit? – The National

Can India’s LIC public offering narrow the country’s budget deficit? – The National

India's biggest initial public offering is set to open this week, as the government pushes ahead with selling a stake in Life Insurance Corporation of India, despite market conditions being dampened by Russia's invasion of Ukraine.

The IPO, which is expected to raise up to $2.7 billion — less than half the amount that was earlier anticipated from the listing — will generate much-needed funds for the government to narrow its budget deficit.

“It's an important event for capital markets as well as for the government of India,” says Mitul Shah, head of research at Reliance Securities. “The government wants LIC to be a long-term value creator in the equity market and it would support the government to get a sizeable amount from its disinvestment plan.”