LIC IPO may end in job losses, social spending, commerce union warns





The mega preliminary public providing of India’s largest state-backed insurer may end in job losses and impression the corporate’s social infrastructure spending plans, in keeping with one in all its largest commerce unions.


Life Insurance coverage Corp. “was fashioned to offer insurance coverage to rural and social and economically backward folks,” Rajesh Kumar, common secretary of All India LIC Workers’ Federation, stated in an interview with Bloomberg TV on Tuesday. The corporate, which has been funding capital-intensive infrastructure tasks equivalent to roads, railways and energy for greater than six many years, might as a substitute give attention to “profit-maximizing investments” after the IPO, Kumar stated.


Prime Minister Narendra Modi’s authorities is seeking to dilute as a lot as 10% stake in LIC as a part of a broader divestment goal to assist plug a widening funds hole. The sale, which is about to be the nation’s largest, may worth the corporate at as a lot as $261 billion, surpassing Reliance Industries Ltd., in keeping with analysts at Jefferies India.


The commerce union, which represents about 4,000 of LIC’s roughly 114,000 staff, has written to the prime minister and members of Parliament to protest concerning the itemizing and is planning campaigns to lift considerations concerning the share sale, Kumar stated.


“We consider that promoting nationwide asset is a willfully disruptive coverage,” he stated. “Recruitment might be minimal, outsourcing will occur and job losses will happen.”


The federal government final month picked 10 banks for the sale that’s deliberate for between January and March 2022.

Pricey Reader,

Enterprise Normal has at all times strived exhausting to offer up-to-date data and commentary on developments which can be of curiosity to you and have wider political and financial implications for the nation and the world. Your encouragement and fixed suggestions on the right way to enhance our providing have solely made our resolve and dedication to those beliefs stronger. Even throughout these troublesome instances arising out of Covid-19, we proceed to stay dedicated to preserving you knowledgeable and up to date with credible information, authoritative views and incisive commentary on topical problems with relevance.

We, nonetheless, have a request.

As we battle the financial impression of the pandemic, we’d like your assist much more, in order that we will proceed to give you extra high quality content material. Our subscription mannequin has seen an encouraging response from lots of you, who’ve subscribed to our on-line content material. Extra subscription to our on-line content material can solely assist us obtain the targets of providing you even higher and extra related content material. We consider in free, truthful and credible journalism. Your assist by way of extra subscriptions may also help us practise the journalism to which we’re dedicated.

Help high quality journalism and subscribe to Enterprise Normal.

Digital Editor



Supply hyperlink