Congress targets govt over LIC IPO

New Delhi, May 3

The Congress today attacked the government for allegedly undervaluing LIC shares ahead of its IPO and said the shares were being offered at throwaway prices.

Congress general secretary and chief spokesperson Randeep Surjewala said why the government reduced LIC valuation from Rs 12-14 lakh crore in February to Rs 6 lakh crore in just two months.

He said the government had in February targeted receiving Rs 70,000 crore by selling 5 per cent stake in the public sector undertaking, but it has now been reduced to Rs 21,000 crore with 3.5 per cent stake sale.

“Why is the government trying to sell LIC when domestic and global financial markets are in turmoil on account of the Russia-Ukraine war and a host of factors leading to economic downturn?” he said.

He said the Secretary, Public Sector Divestment, had recently said the government would not sell stake in PSUs if market conditions were not favourable. “Why is the LIC IPO an exception to that policy? India seeks answers,” Surjewala said.