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.