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LIC IPO: Staff union to hold walkout strike in protests against move

The walk-out will take place at all offices of the insurance behemoth across the country

Press Trust of India  |  Mumbai 

LIC, Life Insurance Corporation of India
Life Insurance Corporation of India

The employees' union of (LIC) will stage an hour-long walk-out strike on Tuesday to protest against the government's move to sell its stake in the state-run insurer through an initial public offering.

The walk-out will take place at all offices of the insurance behemoth across the country.

In the Union Budget announced on Saturday, Finance Minister announced that the government, which holds 100 per cent stake in LIC, will sell a part of its holding through an initial public offering (IPO).

"As an immediate reaction to the proposal to list LIC, All India Employees Federation will hold one-hour walk-out strike on February 4," the union said in a statement.

Listing of is against national interest as over the years it has been playing a pivotal role in nation building activities, it said.

On a capital base of Rs 5 crore, the union said LIC's valuation surplus wasRs 53,211.91 crore, life fund stood at Rs28.28 lakh crore and asset under management over Rs 31.11 lakh crore at the end of FY19.

Being one of the biggest financial institutions of the country, any move to privatise will shake the confidence of the common man and will be an affront to our financial sovereignty. The very purpose of LIC to provide insurance coverage to socially and economically backward class at a reasonable cost will be defeated and motto will change from service to profit, the statement said.

Minister of State for Finance Anurag Thakur said the listing of LIC will help bring in greater transparency, public participation and also deepen the equity market.

Government came out with the idea (LIC listing). The details will follow and it will be in the interest of LIC and its policyholders. Interest of LIC and policyholders will be safeguarded, Thakur recently told PTI.

Finance secretary Rajiv Kumar on Sunday said the listing may be done in the second half of the next financial year.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Tue, February 04 2020. 12:05 IST