NEW DELHI : The government will decide on the timing of the initial public offering (IPO) of Life Insurance Corp. of India (LIC), keeping in mind the interest of investors amid the ongoing Russia-Ukraine war, Tuhin Kanta Pandey, secretary of the department of investment and public asset management (DIPAM), said on Friday.

The government intends to do the IPO by March end, but the Russia-Ukraine war has created a dynamic situation that the government is closely monitoring, he said at the seventh National Conference on Economics of Competition Law, 2022.

“There are certain unanticipated events which have taken over right now. We are closely watching the market, and certainly, whatever the government will do, we will do in the best interest of the investors and also the IPO," Pandey said.

 on Thursday that the government would soon decide on the timing of the LIC IPO.

The government aims to list the country’s largest insurer by 31 March.

“That has always been our desire. However, with this crisis that has come up, it is also a very dynamic situation. We are closely watching (the situation), and since you know you are dealing with the market all the time, we have to be watchful and make our strategy accordingly," Pandey stressed.

“LIC is not really a strategic investment, but it is a very important event as it is bringing LIC, which is a very old organization, to wider public ownership. This is also one of the important objectives of the government. We have brought in several listings recently, such as Railtel and IRCTC," Pandey said.

It is because of the LIC IPO proposal that 10 million new demat accounts have been opened, Pandey contended. “LIC alone has brought in something like 10 million new demat (dematerialized) accounts. Now the demat accounts have gone up to more than 80 million, and a tremendous amount of new energy has also come in terms of retail investors," he said.

DIPAM has been holding roadshows with global investors for the past two weeks after the government filed the draft IPO papers on 13 February for the approval of the Securities and Exchange Board of India.

The roadshows have been going well with sovereign wealth funds, alternative investment funds, pension funds, mutual funds, and new investors across markets, including the US, the UK, Canada, Australia and Japan, showing interest, according to an official who spoke on condition of anonymity.

The government aims to sell 5% of its shareholding in the country’s largest insurer through an offer-for-sale (OFS), aiming to garner as much as rs75,000 crore.

Last week, the Union cabinet approved foreign direct investment of up to 20% under the automatic route in LIC to facilitate foreign investment in the insurer.

 The government is seeking a valuation of at least rs15 trillion for LIC based on the rs5.39 trillion embedded value worked out by actuarial firm Milliman Advisors. Investment bankers advising the government on the share sale have said that the money raised will depend on investor appetite.