Life Insurance Corporation (LIC) is all set to start its Initial Public Offer (IPO) on May 4 and will remain open for bidders till May 9, Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said on Wednesday. The size of the LIC IPO is set to be the largest so far in the country.
Now, Former finance minister P Chidambaram, during an interview with NDTV, has questioned the government's 'desperation' to come out with it at the start of a financial year.
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Giving his view about the LIC IPO, Chidambaram said, "It is a wrong time to do an IPO. First, you cut down the size of the IPO and have also lowered the offer price. Both indicate that this is not the most propitious time to bring an IPO."
Chidambaram, in addition, also questioned why the government decided to bring LIC IPO after missing the March 31, 2022 deadline.
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The former Finance Minister said, "They claim that direct tax collections are robust, then what was the desperation to bring the IPO in the first month of a new financial year? Normally there is no lack of money during the months of April and May of a new fiscal and governments are flush with funds at this time of the year. If you are short of resources, you can do it later. I think it was a completely wrong time to do an IPO."
For the unversed, policyholders will get a discount of Rs 60 per equity share. Retail and employees will get a discount of Rs 40. LIC has set its price band for the IPO at Rs 902 to Rs 949 per equity share.
