Early Mega Public Offering Insurance companies supported by India’s largest country can result in loss of work and the impact of the corporate social infrastructure expenditure plan, according to one of its biggest trade unions.
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Life Insurance “was formed to provide insurance for rural and social and economic people behind,” Rajesh Kumar, Secretary General of the Federation of all Indian LIC employees, said in an interview with Bloomberg TV on Tuesday.
The company, which has funded capital-solid infrastructure projects such as roads, trains and electricity for more than six decades, can not focus on “investment maximizing profits” after the IPO, Kumar said.
Prime Minister Narendra Modi is seeking to run as much as 10% in LIC as part of a broader divestment target for the assistance of widening budget gaps.
Sales, which are regulated to become the largest country, can appreciate the company at $ 261 billion, exceeding Reliance Industries Ltd., according to analysts in Jefferies India.
The trade union, which represents around 4,000 of these 114,000 employees, has written a letter to the Prime Minister and MPs to protest about listing campaigns and plans to fear the salary increase about the sale of shares, Kumar said.
“We believe that selling national assets is a policy intentionally annoying,” he said.
“Recruitment will be minimal, outsourcing will occur and loss of work will take place.” The government last month chose 10 banks for planned sales for between January and March 2022.
IPO LICs can affect work, social expenses, union warns
