IPO of LIC – Impact on Organisation and Insurance Sector

In budget 2020-21, our Finance Minister NirmalaSitharaman announced to sell part of government holdings in Life Insurance Corporation of India through the initial public offerings. At present the government owns LIC hundred percent. Now through the disinvestment policy of central government 10% of its stake holdings is to be announced in the form of LIC IPO. In this paper, we made an attempt to study the overall impact of LIC IPO. In the paper, opinion of different experts has been discussed. Based on secondary data it was found that the decision of the union government to withdraw part of its stake from the investment by issuing LIC IPOs is better if it does not affect the main motto of the providing service to the people of the nation. From the point of view of development of the nation LIC IPOs are welcome feature as India is to be turned from ‘developing nation’ into ‘developed nation’. At the same time the hard earned money of the policy holders must be safe guarded and the employees must be secured.