The company has already received Sebi approval to float its IPO, but its merchant bankers have advised it to not be hasty, citing adverse market conditions and a lack of appetite for the share sale that’s set to be the country’s biggest ever.
The Department of Investment and Public Asset Management (DIPAM), which manages the government’s investments and divestments, said it hopes the market volatility will come down.
The market has been choppy in the last two months due to concerns over monetary tightening, rising inflation and an ongoing war in Europe that has threatened the supply chain of many commodities.
The government agency said sale plans of Bharat Petroleum and Shipping Corporation that have seen a number of hurdles and delays in the last few years are in the advanced stage.
Though Shipping Corporation stake sale may also be at the mercy of the market, the company itself has admitted. “Globally markets are facing the impact of the crisis, I don’t think this is the right opportune moment,” Shipping Corp. Chairperson and Managing Director Harjeet Kaur Joshi said in an interview to Bloomberg Television on Tuesday.
Meanwhile, the government has struggled to find a buyer for Bharat Petroleum.
