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New Delhi: India’s largest state-backed insurer’s mega initial public offering could result in job losses and impact the company’s social infrastructure spending plans, according to one of its largest trade unions.
“Life Insurance Corporation was formed to provide insurance to rural and socially and economically backward people,” Rajesh Kumar, general secretary of All India LIC Employees Federation, said in an interview with Bloomberg TV on Tuesday. The company, which has been funding capital-intensive infrastructure projects such as roads, railways and power for more than six decades, may focus on “profit-maximizing investments” after the IPO, Kumar said. .
Prime Minister Narendra Modi’s government is trying to reduce 10% stake in LIC as part of a broader disinvestment target to help bridge the widening budget gap. According to analysts at Jefferies India, the sale, which is set to be the country’s largest, could value the company at $261 billion, overtaking Reliance Industries Ltd.
Kumar said the trade union, which represents about 4,000 of LIC’s approximately 114,000 employees, has written to the prime minister and members of parliament opposing the listing and is planning a campaign to raise concerns about the share sale. Yes, Kumar said.
“We believe that selling national assets is a deliberately disruptive policy,” he said. “Recruitment will be minimal, there will be outsourcing and there will be job losses.”
government last month 10 banks selected For sale which is planned between January and March 2022. – bloomberg
Read also: Goldman Sachs, Kotak, ICICI among 10 banks to manage LIC’s IPO
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