LIC IPO: Bankers buy time to decide on valuations amid market mayhem

Domestic institutional investors, including mutual funds, are keeping their powder dry to invest in LIC's offering

The turmoil in markets worldwide has put investment bankers in a dilemma over entering into discussions on the pricing of Life Insurance Corporation of India’s (LIC) initial public offering (IPO).

Investment bankers said this might not be a good time to gauge investor response, which is critical to determine the demand for the IPO and decide on the kind of valuations the investors will be comfortable with. This is because most foreign investors will prioritise realigning existing portfolios over fresh investments amid the current geopolitical tensions between Russia and Ukraine.

Roadshows and subsequent discussions on an offering’s attractiveness usually take about two