LIC IPO: LIC's IPO will come on March 11, first common investors will not get a chance

Big investors troubled by government ownership of LIC, know why there is a fear of investing money


new Delhi. The government is determined to bring the IPO of Bharti Life Insurance Corporation (LIC), but big and potential investors have raised a different concern. They say that they will not strangle their interests to fulfill the goals of the government.

In the first fortnight of March, the government will launch an IPO of about $ 8 billion in the market. The company has heavily bought shares of government companies in the last few years. He has also invested money to revive many institutions. In such a situation, potential investors feel that if the performance of LIC’s IPO after listing is not as expected, they may incur losses.

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This is the concern of investors
Sriram Subramanian, founder of proxy advisory firm InGovern, said the government wants to act as a controller, shareholder and manager and this creates confusion about its role. The intention of the government is that LIC should be under 100 percent control and it can be influenced whenever it is needed. This situation is a cause of concern for the investors.

LIC chairman also assured but…
LIC Chairman MR Kumar said in a press conference on Monday that potential investors should not worry about the government’s control. All decisions regarding the company’s IPO will be taken by their board, not the government. However, even after this statement, some investors feel that the government’s large stake and control will not be beneficial for them.

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95% stake will be there even after IPO
The government has now kept 100 percent control over LIC. That is, he has the entire stake of the company. Through the IPO, it will hand over only 5 percent of the market and even after that it will be entitled to 95 percent of the share. In such a situation, the concern of investors is that the government should not sacrifice their interests to fulfill their goals and interests.



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