Centre’s move to sell LIC shares comes in for criticism

Mysuru, September 14:- The government has started the process to launch the initial public offer (IPO) of Life Insurance Corporation (LIC) of India within this year. The IPO is expected to be the biggest in the Indian capital markets given the size and scale of LIC, the country’s oldest and largest life insurer. The finance ministry has invited bids from transaction advisors, including consulting firms, investment bankers, and financial institutions, for assisting the government in the preparatory processes leading to the IPO.

Protesting against the Centre’s move, LIC Pensioners’ Association has said the government-owned insurance sector will be doomed if the central government decides to go ahead.

The LICPA members, who had gathered in large numbers near Agrahara Circle in the city on Monday (September 14), said, “LIC has been able to successfully spread the message of insurance in the last 64 years. It is a symbol of people’s trust and a brand by itself. Lakhs and lakhs of families have been benefited by the insurance scheme.  LIC has also contributed immensely to the economy of the country. Very recently, LIC donated Rs 1.5 lakh crore for a central railway scheme. Investment in LIC is as safe as anything. The Centre’s move to sell LIC shares will only benefit capitalists and not the common man. Beginning with an investment of Rs 5 crore, LIC is worth Rs 31.96 lakh crore now. We see no good reason behind the Centre’s move.”

LICPA general secretary C R Krishnamurthy and others were present during the protest. (MR/KS)



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