New Delhi, May 3 (FN Agency) Congress chief spokesperson Randeep Singh Surjewala on Tuesday questioned why the Life Insurance Corporation (LIC) was being valued at less than its market value, a day ahead of the initial public offering being issued. “Why is the confidence and trust of 30 crore LIC policy holders being undervalued at much less than the market value of Life Insurance Corporation?” Surjewala questioned. He said on May 4, the government is partially disinvesting LIC, and said, “Modi Government is reading to launch a LIC IPO. Nothing wrong with it, it is part of disinvestment policy, we don’t object to it…
But the Intent, Purpose, and Modus Operandi of the government’s desperation to list LIC IPO, despite lower valuations, omission to take into account key valuation indices, global uncertainties and a volatile market is deeply intriguing and highly questionable, that’s our only objection”. “Why was the LIC valuation of Rs 12-14 lakh crore in February 2022 reduced to Rs 6 lakh crore in just two months?” he questioned. He said that since Jan-Feb 2022, Share Price band of LIC has been pared down by Modi government from Rs 1,100 per share to the current price band of Rs 902 – 949 per share. “Some experts feel that the government will lose Rs 30,000 crore by reduction in Embedded Value & pairing down the Price Band,” he said. India’s biggest public issue, the Life Insurance Company (LIC) initial public offering (IPO) hits primary markets on Wednesday. Government has fixed the LIC IPO price band at Rs 902 to Rs 949 per equity share. The LIC IPO has been valued at Rs 21,000 crore.