Finance Minister Nirmala Sitharaman said on Tuesday that the government is proceeding with the Life Insurance Corporation (LIC) initial public offering (IPO) because "there is a buzz in the market and interest." On the other hand, she cautioned that the government is concerned about whether "the market situation is conducive (for it)." This was said by the finance minister during a press conference in Mumbai today, on the last day of her two-day visit to the city. The current scenario in Eastern Europe has had significant ramifications on global markets. Oil prices have risen dramatically, surpassing $99 per barrel earlier today. Ms. Sitharaman made her remarks in the midst of rising tensions between Russia and Ukraine. On February 13, the LIC IPO's draft red-herring prospectus (DRHP) was made public. The offer is for the sale of up to 316.25 million shares, or around 5% of the government's holdings in LIC. The release of the DRHP, according to the finance minister, has increased interest in the IPO.

Key Points

• Finance Minister Nirmala Sitharaman said on Tuesday that the government is proceeding with the Life Insurance Corporation (LIC) initial public offering (IPO) because "there is a buzz in the market and interest."

•  The offer is for the sale of up to 316.25 million shares, or around 5% of the government's holdings in LIC. The release of the DRHP, according to the finance minister, has increased interest in the IPO.