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The LIC market opened today amid fears about global market volatility

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The LIC market opened today amid fears about global market volatility

After a record-breaking IPO last week, India’s insurance behemoth, the Life Insurance Corporation or LIC, made a shaky market debut on Tuesday. According to a Bloomberg report, shares in the state-owned insurance giant fell 9.4% to 860 rupees in Mumbai in the first hour of trading, compared to the issue price of 949 rupees. The government raised $2.7 billion (Rs 20,557 crore) last week by selling a 3.5 percent stake in the country’s top insurer, which was at the top of the range. However, analysts believe that global market volatility has cast a pall over the Dalal Street debut.

1. According to Reuters, a LIC executive stated that the company “should be able to settle our market share at 62-63 percent of the insurance market.” “We’ll look to push the guaranteed return plan products in the future to improve margin,” the executive said.

2. The LIC IPO was nearly three times oversubscribed, thanks to the enthusiasm of policyholders who received a 60 discount with multiple bids for the shares on offer. The shares were sold to LIC policyholders and retail investors for $889 and $904 respectively.

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3. Despite opposition criticism, the government decided to proceed with the IPO despite a global fundraising slowdown and decreased appetite among foreign investors due to the Ukraine conflict. According to a PTI report, the government has sold over 22.13 crore shares through the IPO.

4. Despite the absence of foreign investment, the IPO was said to be well received by retail and institutional investors.

5. Many dubbed the LIC IPO, which was the country’s largest to date, “India’s Aramco moment.” Saudi Arabia’s state-owned oil company Aramco raised $25 billion in the world’s largest initial public offering (IPO) in 2019, breaking Alibaba’s record.

6. According to the latest Ernst and Young report, the Indian IPO market slowed significantly in the first quarter of this year.

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7. The slowdown is thought to be caused by geopolitical tensions, stock market volatility, a price correction in overvalued stocks from recent IPOs, as well as concerns about rising commodity and energy prices and slower economic growth.

8. The Bombay Stock Exchange and the National Stock Exchange have both listed LIC shares.

9. Previously, the amount raised from the Paytm IPO in 2021 was the highest at 18,300 crore, followed by nearly 15,500 crore from Coal India (2010) and 11,700 crore from Reliance Power (2008).

10. The LIC share sale was originally scheduled for March but was postponed due to the Ukraine conflict.

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Pahalgam Attack

Pachigam attack aftermath: International airlines avoid Pakistani airspace amid tensions with India

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Pachigam attack aftermath: International airlines avoid Pakistani airspace amid tensions with India

Due to a lengthier path, Lufthansa Flight LH760 from Frankfurt to New Delhi had to fly for over an hour longer on Sunday. Major foreign airlines, including Air France and Lufthansa, are avoiding Pakistani airspace as tensions between India and Pakistan remain high after a deadly terrorist assault in Pahalgam, Jammu and Kashmir, according to airlines and flight trackers on.

Monday. Air France agreed, stating that it had decided to halt flights over Pakistan due to the “recent evolution of tensions” between the two South Asian foes. “The airline has decided to suspend overflight of Pakistan until further notice,” Air France said in a statement, referring to the “recent evolution of tensions” between India and Pakistan The airline currently changing.

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In the wake of the recent Pachigam terror attack, a significant shift in international aviation routes has occurred. Following an uptick in security concerns and rising geopolitical tensions between India and Pakistan, several international airlines have opted to avoid Pakistani airspace, rerouting their flights to ensure passenger safety. The decision comes nations.

The Pahagam Terror Attack: A Trigger for Renewed Tensions

On the night of the attack in Pachigam, a popular tourist destination in Jammu and Kashmir, militants carried out a series of strikes on civilian and military targets. The assault left a number of casualties, both military personnel and civilians, sparking widespread condemnation. The attack, attributed to militant groups operating from across the border.

Airlines’ Concerns Over Safety and Security

In response to the escalating threat in the region, several international airlines, including prominent carriers from Europe, the Middle East, and Asia, have started to reroute their flights to avoid crossing Pakistani airspace. These precautionary measures, while not unprecedented, are a direct reflection of the security situation that has worsened in the wake of the attack.

Airlines typically rely on international aviation corridors for the fastest and most efficient flight paths, and Pakistani airspace has historically been a critical component of many international routes connecting Europe and Asia. However, in light of the heightened risk of military conflict, commercial carriers have begun to take proactive steps to avoid the region.

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European carriers, such as Lufthansa and Air France, have adjusted their flight paths over the past few weeks, choosing to bypass Pakistan altogether. Similarly, Middle Eastern giants, like Emirates and Qatar Airways, have rerouted certain flights to avoid potential risks associated with flying in close proximity to the disputed borders. These changes have led to longer flight.

The International Air Transport Association (IATA) has noted that these changes, while necessary, come with considerable logistical and financial consequences. Airlines must navigate alternative routes, which may lead to higher fuel consumption and longer durations of travel. Nevertheless, passenger safety is the highest priority, and the industry remains.

Diplomatic Implications and Regional Stability

The rerouting of international flights has far-reaching implications, not only in terms of aviation logistics but also for regional diplomacy. The decision to avoid Pakistani airspace can be seen as a subtle but clear indication of the international community’s concerns regarding with the growing uncertainty in the region, underscores the volatile nature of South the security situation between India and Pakistan. Such moves may further isolate Pakistan.

The Future of Aviation in the Region

As the situation unfolds, the aviation industry is closely monitoring developments. For international carriers, navigating the delicate balance between commercial operations and national security concerns is no small task. In the coming weeks, further changes in flight patterns are expected, depending on how the diplomatic and military tensions between India.

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