LIC IPO Listing: The employees union of LIC has opposed the IPO listing saying that this will distract the company from its objectives. The objective of LIC is to provide insurance facility to the social-economically backward people, but privatization will make it a company focusing on profit rather than service.
LIC IPO, LIC stake sale: On Tuesday, the employees union will cease to function for a one-hour walkout strike against the government’s announcement to sell a part of LIC to the stock market. The employees union said that all its members would walkout for one hour at all LIC offices in the country on Tuesday. Finance Minister Nirmala Sitharaman announced the launch of the IPO of the country’s largest and public insurance company stake during the budget on Saturday. During this announcement, leaders of opposition parties also created a ruckus in the Parliament and called it a step to stake the future capital of the people. Nirmala Sitharaman had said that the government currently holds a 100 per cent stake in Life Insurance Corporation of India, but a small part of it will be sold by bringing an IPO. LIC’s employees union issued a statement saying, ‘Employees union will hold one-hour protest in protest of the government’s announcement and under it a 1-hour walkout.
5 crore to 53,000 crore LIC: LIC Employees Union said that it is against the interest of the country to sell LIC in the stock market. The union said that LIC has always had a significant contribution in building the country. The union said that LIC has made a valuation surplus of Rs 53,211 crore so far, starting with a capitel base of 5 crore in terms of its business. The company has a life fund of Rs 28.28 lakh crore, while asset under management of 31.11 lakh crore. The company has decided this journey without any privatization.
… So LIC will focus on profitability rather than service: The company’s employees say that any move to privatize LIC, one of the largest financial institutions in the country, will reduce the trust of the common man. This will also hurt our economic sovereignty. Opposing the government’s move, the union said that the objective of LIC is to provide insurance coverage to socially and economically backward people at a low cost. Its privatization will affect the company’s objectives and become a company focusing on profit rather than service.