New Delhi: Ahead of the mega LIC initial public offering listing, the Congress on Tuesday attacked the Government. Congress asked four pointed questions. The party also alleged that the “confidence and trust of 30 crore policy holders has been valued at throwaway prices”.
Tomorrow for public the IPO will be listed.
Congress leader Randeep Sujewala, targeting Prime Minister Narendra Modi, he wrote: “Fire sale of India’s assets continues, as ” Jumlas of Tube light” are dished out in a season of total electricity failure! Is Modi Govt breaching the trust of 30 crore #LIC policyholders?”
In the first question, the Congress party questioned, “Why was the LIC valuation of ₹12-14 lakh crore in February 2022 reduced to Rs. 6 Lakh Crore in just 2 months?”
Since the month of January by Modi government the share price band of LIC has been pared down. According to their statement, price has been pared down from ₹1,100 per share to the current price band of ₹902 – 949 per share. Some experts feel that the government will lose ₹30,000 crore by reduction in embedded Value and pairing down the price band.
“Why did the Modi government suddenly reduce the ‘valuation of LIC’ and ‘Issue Size’ after roadshows in India and Abroad?” is the Congress’s second question.
After roadshows for big ticket investors in February were conducted by the government, ₹70,000 crore target was reduced to ₹21,000 crore, it alleged.
The third question that the Congress asked was: “Is Modi government ignoring LIC’s key indices?”
Last question was made in reference with Ukraine war. Exception to the LIC IPO policy was questioned. It also cited the Public Sector Divestment’s secretary-in-charge’s statement that the government won’t sell stakes in public sector units if the conditions were not favourable.
News Agency PTI reported that on Tuesday, the insurance giant said it collected a little over ₹5,627 crore from anchor investors led primarily by domestic institutions a day before.
In what has been said to be one of the biggest IPOs in the Indian market, the government aims to raise ₹21,000 crore by diluting 3.5 percent of stakes.
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