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Govt to go ahead with LIC IPO
February 23, 2022
Finance Minister Nirmala Sitharaman on Tuesday said that the government would proceed with the initial public offer (IPO) of Life Insurance Corporation of India (LIC), despite volatility in the market in the midst of international concerns.
Refusing to comment on if there can be any delay in IPO, Sitharaman said, “There is a buzz in the market and there is interest for LIC IPO. We are going ahead with it.” However, she added, “We are equally worried if the market situation is conducive.”
The FM added that the volatility in the markets was because of worldwide factors and the government was intently watching the developments in Russia-Ukraine. In the midst of the crude prices closing $100 a barrel, the minister said that the surge in crude prices was a challenge.
Bonds, which had been rallying since the RBI’s monetary policy, rose again on Tuesday as the central bank announced its weekly bond auction. The RBI had cancelled its bond auctions as the government’s accounts were in fine fettle. Resolving the issue of cancellation of the weekly bond auctions over the most recent fourteen days, economic affairs secretary Ajay Seth said that the government has not carried out borrowing through bonds as the cash position is right now comfortable and hence, there was no necessity to borrow. “It is a dynamic situation and there will be no surprises to the market in terms of auctions,” Seth said.
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