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Govt keen, but some regulators raise concerns on LIC IPO timing

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3 years ago

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Govt keen, but some regulators raise concerns on LIC IPO timing

Although the Department of Investment and Public Assets Management (DIPAM) was informed that it is eager to launch the LIC IPO in March 2022 to meet its revised divestment target for the current financial year, some key representatives of the regulator have opposed the move, citing the policy holding The percentage of people linking PAN to their policy is low, and the number of Demat accounts is even lower. Geopolitical developments in Russia and Ukraine and their impact on markets, FPI outflows in recent months, market volatility, and March being unsuitable for large public offerings have also raised new concerns.

At least two key officials have said that the timing of LIC’s IPO may be untimely due to a number of factors.

“The main focus is on policyholders. While there are nearly 30 million LIC policyholders, less than 4 million PANs are associated with their policies. Even fewer numbers have demat accounts. Although LIC has been pushing its policyholders People are linking their PAN with their policies and policyholders to open Demat accounts, but we’re not sure enough has happened on that front,” a source said. He added that the current market volatility also does not bode well for a major problem.

Another official, speaking on condition of anonymity, said the general weakness in the market and the sharp outflow of FPIs are another reason why LIC is not going ahead with an IPO now. Over the past two months, FPIs have net withdrawals of over Rs 64,461 crore. “March is usually not a good time to deal with big issues as companies have to file withholding taxes, so market liquidity is low. Although the market has been soft in recent months and FPIs have been pulling a lot of money out of Indian equities , but recent geopolitical concerns are raising new concerns,” he said.

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If you go into a choppy market with a big theme, he added, “not only do you risk signing up, but you’re not getting a good price or a premium, so you’re going to lose your return.” Less. You shouldn’t go public just because you want to meet your divestment goals this year. I don’t think it was the right decision,” the official said.

LIC is expected to raise around Rs 60,000 crore from the public offering. Last week, LIC chairman MR Kumar expressed his willingness to launch his own IPO this financial year. “We are closely monitoring geopolitical developments. We are excited about the March listing,” Kumar said last week, referring to market volatility and developments in Ukraine.

Complete News Source : The Indian Express

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Oppn seeks probe into Adani charges in US: ‘Obvious protection of PM Modi’

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1 day ago

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November 21, 2024

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Oppn seeks probe into Adani charges in US: ‘Obvious protection of PM Modi’

Following US SEC charges of bribery against Gautam Adani, opposition parties criticise PM Narendra Modi and call for a JPC investigation.

As billionaire Gautam Adani faces charges in the US for alleged bribery and fraud, the Opposition on Thursday intensified its attack on the Centre over its alleged links with the Adani Group.

Gautam Adani has been charged in the US with allegedly paying $250 million in bribes to Indian officials between 2020 and 2024 to secure favourable terms for solar energy contracts. The scheme, prosecutors said, could have earned Adani’s group over $25 billion in profits.

Congress demands JPC probe

Reacting to the charges, the Congress called for a Joint Parliamentary Committee (JPC) probe into alleged scams involving Adani’s conglomerate. The party also demanded the appointment of a “new and credible” Sebi chief to investigate Adani’s financial dealings and compliance with securities laws.

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ALSO READ- At 65.2%, Maharashtra records highest voter turnout since 1995 assembly election

Congress leader Jairam Ramesh said the US Securities and Exchange Commission’s (SEC) actions highlight the failure of Indian institutions to investigate the group. “The indictment vindicates Congress’s demand since January 2023 for a JPC into the Modani scams,” Ramesh wrote on X.

He accused Prime Minister Narendra Modi of shielding Adani and claimed Congress’s “Hum Adani Ke Hain Kaun” (HAHK) series had exposed the businessman’s alleged fraud and his ties with the PM.

The fact that it has taken a foreign jurisdiction to properly investigate Adani only shows how Indian institutions have been captured by the BJP, and how decades of institutional development have been undone by greedy and power hungry leaders, the Congress leader said in another post.

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“All of this is consistent with a long record of fraud and criminality carried out with impunity with the obvious protection of the Prime Minister,” Ramesh charged.

Other Oppn leaders join attack

Other opposition leaders joined the attack. Trinamool Congress MP Saket Gokhale questioned the BJP’s involvement in Adani’s dealings and demanded an independent judicial probe.

Aam Aadmi Party leader Sanjay Singh accused PM Modi of allowing Adani to tarnish India’s global reputation.

ALSO READ- Adani Group shares plunge after US SEC charges, Adani Green down 16%

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Adani stocks latest updates

The allegations rattled markets, with Adani Group stocks plunging. Adani Enterprises fell 20 per cent in pre-open trade, while shares of Adani Ports, Adani Green, Adani Power, and others dropped between 7 per cent and 18 per cent.

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