IPO, interrupted: The delay in the mega LIC public listing on the back of volatile market conditions has spread to other Indian companies like Delhivery, PharmEasy and MobiKwik.
The ongoing Russia-Ukraine crisis and the share market volatility have impacted the IPO plans of several Indian startups and companies. The Life Insurance Corporation of India (LIC) is speculated to have delayed its mega IPO plans due to volatile market conditions.
Several other companies that are waiting for the LIC IPO to get out of the way are reportedly delaying their IPO plans now. Here are some of the companies that have delayed IPO plans.
Indian payment service provider MobiKwik will not be heading for its IPO in the next few months due to unstable global market conditions. According to a Business Insider report, Co-Founder of MobiKwik Upasana Taku said the volatile market conditions are like to extend due to the Russia-Ukraine crisis and it won’t be possible for the fintech company to issue the IPO anytime soon.
The Nusli Wadia Group had temporarily put on hold Rs 3,600-crore initial public offering (IPO) plan amid the raging Omicron wave and travel restrictions. However, the IPO is likely to be delayed further.
The logistics company has pushed its approximately $1-billion IPO to the next fiscal year starting in April. According to a Moneycontrol report, the reason behind the delay is high volatility in the market. The company is also reviewing its listing plan after SEBI frowned on a planned sale of a substantial amount of shares in the IPO.
Oyo is yet to get a green signal from market regulator SEBI for its planned IPO of $1.2 billion. However, according to a report in The Economic Times, the management bankers of Oyo are not in a rush and are taking their time to respond to the regulator’s queries to purposely slow down the listing.
PharmEasy’s parent company API Holdings got the SEBI nod to raise Rs 6,250 crore through the IPO. However, there have been rumours about a potential delay in the IPO due to a readjustment in its valuation and the grey market indicators. Earlier, it was reported that the e-pharmacy was reconsidering its IPO amid the ongoing market volatility, especially in the Indian tech stocks.
Life Insurance Corporation
The mega IPO of Life Insurance Corporation of India is set to be delayed due to the Russia-Ukraine crisis. According to reports, the delay may be for a few months or for a year.
LIC filed for the country’s biggest-ever public offering of an estimated Rs. 63,000 crore by selling 5 percent stake by the government. Investors are anxiously waiting for the IPO date to be announced.