On Tuesday, May 3, Congress criticised the government’s move to sell a 3.5% stake of the Life Insurance Corporation (LIC). The party claimed that the Centre is selling the state at a lower price than its market value.
“The intent, purpose and modus operandi of government’s desperation to list LIC IPO despite lower valuation permission to take into account key valuation indices, global uncertainties and a volatile market is deeply intriguing and highly questionable. That’s our only objection,” said Randeep Singh Surjewala.
LIC IPO is set to be open on May 4 for subscription. The government has set the price band at Rs 902- 949 a share. The policyholders & employees will get a discount of Rs 60 & Rs 45 respectively.
Congress has further asked four questions from the ruling party:
- “Why was the LIC valuation of ₹12-14 lakh crore in February 2022 reduced to ₹6 lakh crore in just two months?”
- “Why did the Modi government suddenly reduce the ‘valuation of LIC’ and ‘issue size’ after roadshows in India and abroad?”
- “Is Modi government ignoring LIC’s key indices?”
- “Why is Govt trying to sell LIC when Domestic and Global Financial Markets are in a turmoil on account of Russia-Ukraine War and a host of factors leading to economic downturn?”
LIC has accumulated over Rs 5,627 crore from anchor investors on Tuesday. LIC will be India’s biggest IPO as it plans to raise Rs 21,000 crore by selling 3.5% stake.