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TCS plans overhaul with aim to double revenue to $50 bn before 2030

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The Mumbai-based company will create four internal teams in order to double its revenues, according to people familiarTata consultancy services, TCS


plans to overhaul its organizational structure with specialized groups targeted to help startups as well as large global firms as Asia’s largest software outsourcing provider gears up to double its revenues to $50 billion before 2030, according to people familiar.

The Mumbai-based company will create four internal teams -- a business transformation group, incubation group, enterprise growth and another aimed at new business models, according to people familiar who didn’t want to be identified as the details are private. TCS is expected to present this proposed new structure at its board meeting this week, said one of the people.

The rejig is aimed at aligning TCS, India’s second-largest company by market value, with the changing needs of its clients who are increasingly looking to digitise in the post-Covid-19 world and the boom in startups. India’s IT services sector has been on a roll, buoyed by the pandemic-induced rush among enterprises to transform into work-from-anywhere, digital businesses, boosting growth and making it a $227 billion industry by end of March.

A spokesperson for the company said TCS won’t comment on internal business plans or strategies.

Business Journey

TCS’s new structure is based on where its customers are in their business journey, the people said. It factors in, for instance, that a sub-$5 billion start-up would have a very different set of technology and business requirements than a large global corporation.

TCS, which employs over half-a-million around the world, the bulk of them in India, reported $25 billion in revenues for the year ended Dec. 31. Riding the sector boom, TCS and its rivals Infosys Ltd. and HCL Technologies have been signing on new customers, expanding contracts and hiring software programmers by the thousands every quarter.

The outsourcing giant, part of the Tata Group, is also planning to open a dozen innovation centers globally including the US and Europe, according to one of the people familiar.

TCS, however, will need to manage its surging staff costs that partly led to the outsourcer missing analyst estimates on profit last quarter. The company provides a suite of services from cloud to data analytics and infrastructure management to world’s largest including Citigroup Inc., General Motors Co., Woolworths Group Ltd. and Petronas Gas Bhd.

Also Read | Sachin Bansal-led Navi Technologies plans Rs 4,000 cr IPO, filing DRHP soon

Sachin Bansal-led Navi Technologies plans Rs 4,000 cr IPO, filing DRHP soon

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ICICI Securities, BofA and Axis Capital are the investment banks handling the share saleSachin Bansal

Navi Technologies is planning to raise Rs 4,000 crore in fresh capital through an initial public offering (IPO). The company is expected to file its draft red herring prospectus with market regulator Sebi this week, said people in the know.

ICICI Securities, BofA and Axis Capital are the investment banks handling the share sale.

The company declined to comment on a query sent by Business Standard on its plans.

Navi Tech is co-founded and promoted by Flipkart co-founder 

Sources said the could hit the market during the first quarter of next financial year. The company will use the proceeds to fuel its growth.

Navi Tech is a tech-driven financial products and services company. Its key offerings include personal loans, housing loans, general insurance and mutual funds (MFs).

Founded in 2018, the company with its digital-first approach has tried to disrupt the businesses it operates in. For instance, in the MF space it has launched the exchange traded funds (ETFs) with lowest fee structure. In personal loans, it instantly offers loans of up Rs 20 lakh through a completely paperless process.

Till date, Bansal has invested around Rs 4,000 crore into the firm.

In 2019, Navi had acquired Chaitanya India Fin Credit for Rs 739 crore and entered the microfinance segment. Chaitanya had also applied for a universal banking licence from the Reserve Bank of India (RBI). Navi’s loan book size is about Rs 3,500 crore.

Navi MF had acquired assets of Essel MF in 2021. The data from Association of Mutual Funds in India (Amfi) shows that Navi MF has assets of Rs 930 crore as of December quarter.

The company turned profitable in FY21, posting a consolidated profit of Rs 71 crore with a total income of Rs 780 crore and expenditure of Rs 673 crore.

Also Read |  Delhi court grants CBI 7-day custodial interrogation of Chitra Ramkrishna

Delhi court grants CBI 7-day custodial interrogation of Chitra Ramkrishna

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The CBI arrested the former NSE MD on Sunday after her anticipatory bail application was dismissed by the court on Saturday

Chitra Ramkrishna

A Delhi court on Monday granted seven-day custodial interrogation of ex-MD & CEO of NSE in co-location scam case.

The produced the former managing director and chief executive officer of (NSE) before special Special Judge Sanjeev Aggarwal and had sought 14-day custodial interrogation in the case.

The arrested the accused on Sunday after her anticipatory bail application was dismissed by the court on Saturday.

The CBI had recently questioned Ramkrishna in the matter. The Income Tax (I-T) Department earlier raided various premises linked to Ramkrishna in Mumbai and Chennai.

Ramkrishna has been on the radar of the Securities and Exchange Board of India (SEBI).

The CBI court had recently sent Anand Subramanian, former Group Operating Officer and advisor to Ramkrishna, to CBI custody. He was arrested by the CBI from Chennai.

The arrest was made in the case related to the co-location scam, the FIR for which was registered in May 2018, amid fresh revelations about irregularities at the country's largest stock exchange.

The CBI is probing the alleged improper dissemination of information from the computer servers of the market exchanges to the stock brokers.

Earlier, SEBI penalized the NSE, Ramkrishna and Ravi Narayan and two other officials for lapses in recruitment at the senior level. Ravi Narain was the MD and CEO of the from April 1994 till March 2013, while was MD and CEO of the NSE from April 2013 to December 2016.

Sebi observed that the NSE and its top executives violated securities contract norms relating to the appointment of Subramanian as group operating officer and advisor to the managing director.

Article Source:- Business Standard

Also Read| Rupee trades at record low of 76.96 a dollar on soaring crude prices

RBI doesn't listen: TV Mohandas Pai complains to FinMin about central bank

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Pai was furious that the central bank does not even respond to letters from the industry, forcing companies to hire accounting firms to get the job done.

RBI doesn't listen: TV Mohandas Pai complains to FinMin about central bank


TV Mohandas Pai has sought the finance ministry's intervention in the industry's relationship with the Reserve Bank of India (RBI), saying the central bank "doesn't listen" and does not respond to letters.

"If you write a letter to RBI asking for an approval, they don't reply. You have to hire a Big 4 (accounting firm) to go to Bombay, walk on the tables, and get your approval. It's a sad reality of India. Please accept that," Pai, chairman of Aarin Capital and Manipal Global Education, said at an interaction with the top brass of the finance ministry, including Finance Minister Nirmala Sitharaman, in Bengaluru on March 7.

Finance ministry officials are currently visiting various cities and holding post-budget interactions with stakeholders.

Pai's initial grouse was to do with tax and Employee Stock Ownership Plans (ESOP) of start-ups. According to Pai, 40 of India's 93 unicorns are based outside India because of RBI regulations and related compliance issues.

"It is a mess. RBI doesn't listen. We have gone to them many times. If you can take a meeting and listen to us with the RBI, we will be very grateful," Pai told the finance minister and her secretaries.

Ajay Seth, the Department of Economic Affairs secretary and an RBI board member, defended the central bank.

"It will be a loose comment to make that RBI does not listen. They will not agree with your viewpoint. We here, we have heard all your suggestions very carefully. We consider them. We find some of them not feasible and we don't act upon it. Others, we act upon it. If you feel there is an issue with the RBI that has any fiscal element, any policy issue for the government, we will be all ears," Seth said.

However, Pai doubled down on his complaint, saying matters had not improved despite him having personally spoken to RBI Governor Shaktikanta Das.

"I spoke to Dr Rajan (former RBI governor Raghuram Rajan), he came to Bangalore and tried to improve matters. It improved. I spoke to Shaktikanta Das in Bombay. I met him several times, spoke to him. But we don't see an improvement. It's not like interacting with you. They don't respond to letters," Pai said.

"Why can't you have a status where everybody has to respond to a query and give an approval within 45 days. Then the problem will be solved. We have to hire a Big 4. Pay them money. They go to Bombay. They go everywhere. Why should we do that?"

The RBI did not immediately comment on Pai's remarks.

Read Also| Rupee trades at record low of 76.96 a dollar on soaring crude prices

CBI arrests former NSE CEO Chitra Ramkrishna in co-location case

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She will be presented before a Delhi court on Monday morningChitra Ramkrishna

The Central Bureau of Investigation (CBI) on Sunday night arrested former managing director (MD) and chief executive officer (CEO) of Stock Exchange in Delhi in the co-location case after her anticipatory bail plea was rejected by a Special court on Saturday.

“She will be presented before a Delhi court on Monday morning,” a official said under condition of anonymity.

had arrested former group operating officer of NSE Anand Subramanian last week. CBI may also seek extension of Subramanian’s custody on Monday whose 10-day custody ended on Sunday.

The arrests were made in the case related to the co-location scam, the FIR for which was registered in May 2018, amid fresh revelations about irregularities at the country’s largest stock exchange. The CBI had last month questioned Ramkrishna, Subramanian and Ravi Narain, also former CEO of the NSE.

A report of the Securities and Exchange Board of India last month showed that Ramkrishna took key decisions at the NSE from 2013 to 2016 on the advice of a “Himalayan yogi”, whom she had never met and who instructed her to appoint Subramanian group operating officer.

The four-year-old FIR of the CBI was primarily against Sanjay Gupta, MD of OPG Securities. It also named his brother-in-law Aman Kokrady and Ajay Shah, a data specialist and researcher employed by the NSE, along with unknown officials of the NSE and Sebi for their role in the controversy.

Between June 2010 and March 2014, the NSE had deployed the so-called tick-by-tick (TBT) architecture at its colo facility. TBT disseminated data feed sequentially, giving preference to trading members (TM) that had connected first to the colo server.

Taking advantage of the system, OPG Securities frequently obtained first access to the exchange system in connivance with certain NSE staffers. The issue was brought to light by a whistleblower, Ken Fong, who sent three complaint letters to Sebi in January, August, and October 2015, following which the regulator initiated multiple investigations and forensic audits into the matter.

In April 2019, Sebi directed the exchange to disgorge Rs 625 crore, along with an interest of 12 per cent annum since 2014, for lapses at its colo facility, which allowed unfair access to certain brokers. Sebi also told Narain and Ramkrishna, who were at the helm when the exchange servers were exploited, to disgorge a fourth of their salary for a specific period.

The market regulator directed OPG Securities, Gupta, and three others to disgorge Rs 15.6 crore, with an interest of 12 per cent per annum since April 2014. All of them have moved the Securities Appellate Tribunal against the order, where the matter is currently being heard.

Read Also| Rupee trades at record low of 76.96 a dollar on soaring crude prices

Rupee trades at record low of 76.96 a dollar on soaring crude prices

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According to a Kotak Institutional Equities report, an average crude price of $120a barrel will cost the Indian economy an incremental $70 billion, translating to 1.9 percent of the GDP, in FY2023 versus FY2022

Rupee trades at record low of 76.96 a dollar on soaring crude prices

The rupee hit an all-time low of nearly 77 a dollar on Monday after crude oil made fresh surges on news reports that the US and its European allies were weighing a ban on Russian oil.  This was the fourth consecutive session when the currency weakened.

The home currency was trading at 76.96 a dollar, down 1.05 percent from its previous close, at the time of filing this story. It had opened at 76.96 a dollar.

Analysts said that the Russian invasion of Ukraine and likely lower exports of Russian crude oil will keep the oil prices elevated for a protracted period.  "We note increasing risks of global crude prices staying elevated in the next 6-9 months due to large imbalances in the global crude oil markets," an analyst said.

Brent soared to a near 14-year high of $140. Oil reached its highest since 2008 in US trading, and there is no sign of a cooling-off.

The latest setback came after US Secretary of State Antony Blinken told news channels, “We are now talking to our European partners and allies to look in a coordinated way at the prospect of banning the import of Russian oil, while making sure that there is still an appropriate supply of oil on world markets.”

According to Kotak Institutional Equities report, an average crude price of $120a barrel will cost the Indian economy an incremental $70 billion, translating to 1.9 percent of the GDP, in FY2023 versus FY2022. Steep crude prices will pose stiff challenges in the form of higher CAD/GDP, higher inflation and lower growth.

The additional cost will be borne by the government in the form of lower excise revenues and higher MSPs, households in the form of higher retail prices of petroleum products and  companies; however, companies will pass on higher fuel costs to households eventually.

The delays in the potential return of Iranian crude to global markets, fresh supply disruptions in Libya and continued selling by foreign investors in Indian equities also dampened the sentiments among traders and also kept the domestic currency under pressure. Since October, Foreign investors have sold around Rs2 trillion.

On the domestic front, participants will be closely eyeing the state election results in five states of Uttar Pradesh, Uttarakhand, Goa, Punjab and Manipur on March 10. On the macroeconomic front, the IIP data is scheduled for March 11.

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NSE case: CBI court dismisses Chitra Ramkrishna's anticipatory bail plea

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The CBI had earlier arrested Anand Subramanian, NSE's former group operating officer, from Chennai in relation to the alleged scam worth thousands of crores of rupees

Chitra, Chitra Ramakrishna

A Special CBI court in Delhi on Saturday dismissed the anticipatory bail plea of Chitra Ramakrishna, the former CEO-MD of Stock Exchange (NSE), in connection with the NSE co-location case.

Ramakrishna, through her counsel, had approached the court seeking relief from her arrest.

Her plea was opposed by the prosecution. After hearing the argument of defense and the prosecution, the court dismissed the plea.

On February 24, the CBI arrested Anand Subramanian, the ex-Group Operating Officer of NSE. He was later sent to CBI's custody till March 6.

In December 2015, Sebi received a whistleblower complaint alleging governance issues in appointment of Subramanian. The market regulator then sought an explanation from the exchange on various points raised in the complaints. The exchange, which was then headed by Ramkrishna, was evasive. Sebi sent several reminders to the exchange. In October 2016, Subramanian was ousted from the exchange.

In December 2016, Ramkrishna also stepped down as MD& CEO. Around the same time, Sebi had also received whistleblower complaints against NSE’s colocation (colo) facility. The complaint said that the exchange was granting unfair access to certain brokers and alleged scam worth thousands of crores of rupees.

The latest questioning was done on the basis of a first information report (FIR) filed by the CBI on May 28, 2018 in the co-location (colo) matter. The four-year old FIR was primarily against Sanjay Gupta of OPG Securities, a broking outfit alleged to have got unfair access to NSE's colo facilities.

The FIR also named unknown officials of the NSE for their role in the colo controversy. Market observers say the arrest by the CBI is on account of pressure on the central agency to crack down on the case. While Sebi has been criticised for delay in passing the order in the Ramkrishna matter, CBI too had taken little action after filing the FIR nearly four years ago.

The Central Bureau of Investigation (CBI) probing the NSE fraud has been making efforts to find fresh clues to reach the mysterious Himalayan Yogi, with whom the classified informations were shared by Ramakrishna.

It was learnt in the forensic report of Ernst & Young (E&Y) that Subramanian could be the mysterious Yogi. The SEBI had, on February 11, denied it.

The CBI is trying to corroborate the evidence it collected with the questioning of Subramanian.

It is probing the matter since May 2018 but has failed to find any concrete evidence to identify the mysterious Himalayan Yogi.

Recently, the SEBI had imposed a fine of Rs 3 crore on Ramakrishna, following the market regulator finding that she allegedly shared vital inputs about the NSE with the yogi. "Information regarding organisational structure, dividend scenario, financial results, human resource policies and related issues, response to regulator, etc., were shared by her with the yogi," said the source. Between 2014 and 2016 she sent emails at rigyajursama@outlook.com.

On April 1, 2013, Ramakrishna became the CEO and MD of NSE. She brought Subramanian to NSE as her advisor in 2013.

Subramanian was made the Chief Strategic Advisor of NSE. He served at this post between 2013 and 2015 before being made Group Operations Officer and Advisor to the MD between 2015 and 2016, despite having no exposure to the capital market.

Previously working as a mid-level manager in Balmer and Lawrie, he had seen his salary increased from Rs 15 lakh to Rs 1.68 crore annually, and then to Rs 4.21 crore.

Subramanian quit NSE in October 2016 and Ramakrishna in December 2016. The CBI swung into action in the case in 2018 and has been probing the matter since then.


Russia declares ceasefire in 2 Ukrainian cities to let civilians evacuate

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The Russian defence ministry said its units had opened humanitarian corridors near the cities of Mariupol and Volnovakha, which were encircled by its troops

Ukraine

said its forces had stopped firing near two Ukrainian cities on Saturday to allow safe passage to civilians fleeing fighting, but was continuing its broad offensive in Ukraine, where the capital Kyiv came under renewed assault.

The Russian defence ministry said its units had opened humanitarian corridors near the cities of Mariupol and Volnovakha which were encircled by its troops, Russia's RIA news agency reported.

In Mariupol, citizens would be allowed to leave during a five-hour window, it quoted the city's officials as saying.

There was no immediate confirmation that firing had stopped and it was not clear if the ceasefire would be extended to other areas, or how long it would last, as Russia's invasion of entered into its tenth day.

The Russian defence ministry said a broad offensive would continue in Ukraine, RIA said.

Aid agencies have warned of an unfolding humanitarian disaster as food, water and medical supplies run short and refugees stream into western and neighbouring European countries.

A Ukrainian negotiator had said on Thursday that a second round of ceasefire talks with had not yielded the results Kyiv hoped for, but both sides had reached an understanding on creating humanitarian corridors. Mykhailo Podolyak said the two sides envisaged a possible temporary ceasefire in some areas to allow evacuations of citizens.

In the southeastern port city of Mariupol - a key prize - there is no water, heat or electricity and food is running out, according to Mayor Vadym Boychenko.

"We are simply being destroyed," he said.

Ukraine's state service of special communications and protection of information says Russian forces have focussed efforts on encircling Kyiv and Kharkiv, the second-biggest city, while aiming to establish a land bridge to Crimea.

Kyiv, in the path of a Russian armoured column that has been stalled outside the Ukrainian capital for days, was again under attack, with explosions audible from the city centre.

Ukrainian media outlet Suspilne cited authorities in Sumy, about 300 km (190 miles) east of Kyiv, as saying that there is a risk of fighting in the city's streets, urging residents to stay in shelters.

President Vladimir Putin's actions have drawn almost universal condemnation, and many countries have imposed heavy sanctions as the West balances punishment with avoiding a widening of the conflict.

INFORMATION WAR

Russia's parliament passed a law on Friday imposing a prison term of up to 15 years for spreading intentionally "fake" news about the military.

"This law will force punishment - and very tough punishment - on those who lied and made statements which discredited our armed forces," said Vyacheslav Volodin, the chairman of the Duma, Russia's lower house of parliament.

is blocking Facebook for restricting state-backed channels and the websites of the BBC, Deutsche Welle and Voice of America.

CNN and CBS News said they would stop broadcasting in Russia, and other outlets removed Russian-based journalists' bylines as they assessed the situation.

MORE SANCTIONS ON THE WAY?

Ukrainian President Volodymyr Zelensky is expected to press Washington for more help in a Zoom call with the full US Senate at 9:30 a.m. ET (1430 GMT) on Saturday.

The United States is weighing cuts to imports of Russian oil and ways to minimise the impact on global supplies and consumers as lawmakers fast-track a bill that would ban Russian energy imports. Global oil prices surged over 20% this week on fears of supply shortages, posing a risk to global economic growth.

At a meeting on Friday, NATO allies rejected Ukraine's appeal for no-fly zones, saying they were increasing support but that stepping in directly could make the situation worse.

"We have a responsibility ... to prevent this war from escalating beyond because that would be even more dangerous, more devastating and would cause even more human suffering," said NATO Secretary-General Jens Stoltenberg.

Zelenskiy slammed the summit as "weak" and "confused." "It was clear that not everyone considers the battle for Europe's freedom to be the number one goal," he said.

More EU sanctions were coming, potentially including a ban on Russian-flagged ships in European ports and blocking imports of steel, timber, aluminium or coal, said Irish Foreign Minister Simon Coveney.

Ukraine's military said in a statement on Saturday that armed forces "are fighting fiercely to liberate Ukrainian cities from Russian occupiers," counterattacking in some areas and disrupting communications.

"Units of the invaders are demoralized, soldiers and officers of the occupying army continue to surrender, flee, leaving weapons and equipment on Ukrainian soil," it said, adding that at least 39 Russian plans and 40 helicopters had been destroyed. Reuters has not been able to independently verify such accounts.

Thousands of people waited for hours on Friday outside the railway station at the western city of Lviv to board trains heading to Poland. Families arrived with few belongings. Some were in wheelchairs, accompanied by pet dogs and cats, uncertain about their fate.

"All we took with us is the bare necessities," said Yana Tebyakina. "A change of clothes. That's it. All the rest we left behind, all our lives stayed back at home." Russian forces have made their biggest advances in the south, where they captured their first sizeable Ukrainian city, Kherson, this week. Bombing has worsened in recent days in the northeast cities of Kharkiv and Chernihiv.



NMC allows foreign medical graduates to complete internship in India

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IMA has recommended that all evacuated medical students who are Indian citizens to be "adjusted as a one time measure in existing medical schools" in India for the remainder of their MBBS course.

Medical college

Amid concerns over the fate of foreign medical graduates (FMGs), who have returned to India from Ukraine, the National Medical Commission (NMC) on Friday allowed them to complete their internship or practical training in Indian medical colleges.


Allowing FMGs to pursue their internship in India, NMC stated that those foreign medical graduates who did not fall under NMC's Foreign Medical Graduate Licentiate Regulations were governed by provisions under the erstwhile Indian Medical Council Act 1956. The provisions of sub-section (3) of section 13 of IMC Act required such FMGs to complete internship in India if they have not undergone any practical training in the foreign country where they were studying.

However, NMC has now acknowledged the impact of Russian invasion on Ukraine on FMGs' future especially in terms of incomplete internship or practical training in medicine.

"It has further been observed that there are also some FMGs with incomplete internships due to such compelling situations which are beyond their control such as the Covid-19 pandemic and war. Considering the agony and stress faced by these FMGs, their application to complete the remaining part of

internship in India is considered eligible," the NMC circular read.

The commission acknowledged that FMGs were facing hardship in getting themselves registered in some of the state medical councils after publication of Foreign Medical Graduates Licentiate Regulations 2021 and Compulsory Rotatory Medical Internship Regulations 2021 by NMC.

The Friday circular maintained that the provisions were now not applicable for FMGs who had acquired a foreign medical degree or primary qualification before November 18, 2021, candidates who had joined undergraduate medical in foreign colleges before November 18, 2021 as well as those specifically exempted by the union government.

NMC has now asked state medical councils to process completion of internship of these candidates provided they have cleared the foreign medical graduate examination (FMGE). NMC has also directed the state councils to ensure that no fee was charged by from the FMGs for permitting them to do their internship even as the stipend and other facilities to these candidates were to be equivalent to Indian counterparts being trained at government 

NMC also issued guidelines for state medical councils for allowing FMGs to undergo internship such as ensuring that the latter's medical qualification or degree was registerable to practice in their respective foreign country in which the degree was awarded. Other guidelines to the state medical councils included restricting the duration of internship to either 12 months or balance period while restricting the maximum quota for allocation of internship to FMGs to additional 7.5 per cent of total permitted seats in a medical college.

Meanwhile, in its representation to Prime Minister Narendra Modi on behalf of FMGs who returned to India from Ukraine, the Indian Medical Association (IMA) has recommended that all evacuated medical students who are Indian citizens to be "adjusted as a one time measure in existing medical schools" in India for the remainder of their course.

IMA has recommended that such onetime adjustment may not be taken as an increase in annual intake capacity among these Indian medical colleges.

LIC IPO set to be delayed to next fiscal year amid market swings: Report

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LIC's underwriters have seen muted interest during early meetings with potential anchor investors, says Bloomberg.

Life Insurance Corporation

The mega initial public offering of Life Insurance Corporation of India is set to be delayed into the next financial year amid market swings triggered by Russia’s invasion of Ukraine, people with knowledge of the matter said.

Bankers and officials are preparing to shift the listing of the state-run insurer to after the current fiscal year, which ends in March, the people said, asking not to be identified because the matter isn’t public. A formal announcement could be expected this week or next, they added, with one person saying the sale may happen as soon as April if market volatility eases.

LIC’s underwriters have seen muted interest during early meetings with potential anchor investors, according to the people. Many fund managers have been wary of making major commitments amid the market volatility, the people said.

A finance ministry spokesman didn’t immediately respond to a call on his mobile phone. LIC declined to comment.

LIC’s IPO will be the biggest to be impacted by the war, which has wiped out 6% of BP Plc’s market value and over $3 trillion of global market capitalization since tensions started rising from Feb. 18. Indian Prime Minister Narendra Modi had sought to raise as much as 654 billion rupees ($8.7 billion) from the deal, Bloomberg reported earlier, cash that is crucial to plug a gap in the budget deficit for the year through March 31.

India Finance Minister Nirmala Sitharaman said this week she “wouldn’t mind” taking another look at the timing of the LIC offering, though ideally she’d like to go ahead with it. Even if it doesn’t pursue the share sale on the original timeline, the government is still hoping to complete the IPO in the next few months, the people said.

The deferment will be another setback for India, which has massively scaled down its asset sale target after the delay in privatization of other state-run companies, including Bharat Petroleum Corp Ltd. Modi’s administration had hoped to shrink the shortfall to 6.9% of gross domestic product, with the accounting for some 3% of revenue.

The government had also penciled in a record market borrowing for the financial year starting April 1.

India had offered to sell a 5% stake, or about 316 million shares in the insurer in what was seen as India’s Aramco moment. Just like the Gulf oil giant’s $29.4 billion listing, the world’s largest, LIC’s debut would test the depth of the nation’s capital markets and global appetite for the state-owned entity.

Also Read| Need for effective communication strategy to manage expectations: RBI Governor Shaktikanta Das

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