On The Fence: Making Sense of LIC’s IPO

Hosted by Sourya Reddy
Edited by Manasi Nene

Ever since it was announced in the 2020-21 Budget Session, Life Insurance Corporation’s (LIC) IPO has been the talk of the town. As per recent reports, the Central Government is looking at a valuation of Rs. 15 trillion for the organisation, and is offering 5% of its shares to be traded on the stock market. This will bring in approximately Rs. 40,000-50,000 crores to the government, which it plans to use for national investment.

But there have been several questions about this move; will opening up LIC to private shareholders erode the public service ethos that the organisation was set up with? Does the government really need LIC to go for an IPO to realise its national investment goals? And will the IPO enable LIC to expand its reach and get more Indians insured?

In our latest edition of On The Fence, we spoke to Ashvin Parekh (Managing Partner, Ashvin Parekh Advisory Services) and P. Satish (President, South Central Zone Insurance Employees Federation) to understand this debate.

Manasi is a writer, filmmaker, and musician who is keen on exploring issues of education, technology and community mental health. She has also been active in the beatboxing and slam poetry communities of India. Off-the-clock, she can be found cycling, daydreaming, or daydreaming about cycling. Manasi works as The Bastion's Multimedia Associate.
Sourya is the Co-founder and CEO of The Bastion.

3 COMMENTS

  1. LIC IPO is needless. LIC is not in need of money. Rather it provides huge amount of financial resources to the govt for its public welfare plans. Interest of retail investors is a bogus logic. LIC, at present, does utmost care to its smallest policyholders. IPO will ruin the economy in long run. LIC is a factory which makes money. Don’t tamper with its structure.

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