LIC is private or government; common people ask the question from the present and from the years. The topic is being discussed because the lic’s IPO is scheduled to take place in the near future.
When lic’s IPO comes, the common people will also buy its shares. So, who will own it? This question is also arising.
After IPO, what would it be considered whether the LIC is government or private? We can find out the answer from its history.
LIC is private or government ?
The Constitution of India passed the Life Insurance Corporation Act on June 19, 1956.
At this time, about 245 companies, including domestic and foreign companies, were working, and together with all these companies, the Life Insurance Corporation of India was born on September 1, 1956.
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At that time, LIC mainly sold term insurance, and in the first ten years, LIC converted the business of 200 crores into 1000 crores.
In 1985-86, LIC’s business crossed 7 thousand crores; you can guess that in the first 30 years, LIC’s growth was 35 times.
Life Insurance Corporation of India, till the 90s, was the only company in life insurance. IRDAI was established in 1999, and many private insurance companies were also born.
Talking about the present, today, there are 23 private companies and one government company LIC in life insurance.
LIC was formed after a bill was passed, and the Government of India was considered the institution’s owner. Raising the question on this basis, whether lic is government or private, is inappropriate because LIC is a government company.
But now that its IPO has come, is LIC still a government company? This is a fascinating question!
what is reality
You must have heard a saying in movies or any serial that the one who has 51 percent shares of the company will be the owner.
In fact, it is also true that whoever holds at least 51 percent or more shares is the company’s owner.
When the IPO of LIC came in 2022, the Government of India announced that it had reserved more than 51 percent shares with itself.
The Government of India has made only a 3.5 percent stake public and has reserved 96.5 percent for itself.
In this way, the question arising in your mind is lic government or private; the answer is that LIC is a government company and will remain a government company even further.