Wrong Time To Bring LIC's IPO, Says P Chidambaram
NDTV
Mr Chidambaram wondered as to why the Government was desperate to bring the LIC IPO after it had missed the March 31, 2022 deadline
Former finance minister P Chidambaram on Wednesday questioned the timing of the initial public offer (IPO) of Life Insurance Corporation (LIC), seeking to know the reason behind the Government's “desperation” to come out with it at the start of a financial year.
Speaking to NDTV, Mr Chidambaram, when asked about his views on the LIC IPO, termed as one of the biggest public issues of the country, 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.”
He wondered as to why the Government was desperate to bring it after it had missed the March 31, 2022 deadline.
“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," the former finance minister said.
