3 weeks ago
LIC Employees Protest in Vijayawada Against Government's Proposed Stake Dilution
People who work for LIC, a big insurance company owned by the Indian government, held a peaceful protest during their lunch break in Vijayawada.
They were upset because the government wants to sell some of its ownership shares in LIC to other people.
Selling shares is a way for the government to raise money, like selling part of a cake you own.
The government planned to sell 2.5% of LIC's shares, and maybe up to 6.5% total.
The workers' union says this is not good for LIC's customers, called policyholders, or for the country.
They think a company that belongs to the public should stay with the public.
The union leaders asked the government to stop the sale completely.
They said the government's plan is like slowly turning a public company into a private one.
The workers joined together to raise their voices so LIC stays a public company.
LIC employees under the All India Insurance Employees' Association (AIIEA) staged a lunch-hour demonstration in Vijayawada.
The protest opposed the Union Government's decision to further dilute its LIC stake through an Offer for Sale (OFS) announced on August 3, 2026.
The OFS includes a base sale of 2.5% of LIC's paid-up equity plus a 4% greenshoe option, potentially totalling 6.5% dilution.
Government has reportedly raised over Rs 21,000 crore this financial year by offloading shares in seven public sector undertakings.
The association demanded immediate withdrawal of the OFS and an end to what it called the policy of gradual privatisation of public sector assets.
- Who
- Employees of the Life Insurance Corporation of India (LIC), organised under the All India Insurance Employees' Association (AIIEA), supported by CITU AP State Committee president Ch Narsinga Rao.
- What
- A lunch-hour demonstration protesting the Union Government's decision to dilute its stake in LIC through an Offer for Sale (OFS).
- Where
- Vijayawada (Andhra Pradesh, India).
- When
- On Wednesday, following the government's OFS announcement on August 3, 2026.
- Why
- Unions argue the stake dilution harms the long-term interests of policyholders, the economy and the nation, and they demand the withdrawal of what they describe as a policy of gradual privatisation.
Union Employees' View
Union Government's View
LIC Stake Dilution via OFS
Union Employees' View
Diluting public ownership would not serve the long-term interests of policyholders, the economy or the nation, and amounts to gradual privatisation of public sector assets; the OFS should be immediately withdrawn.
Union Government's View
The government proceeded with the OFS announced on August 3, 2026, and has already raised over Rs 21,000 crore this financial year by offloading shares in seven public sector undertakings.
Key facts
- Protesting body
- All India Insurance Employees' Association (AIIEA)
- Location
- Vijayawada
- OFS announcement date
- August 3, 2026
- Base stake sale
- 2.5% of LIC's paid-up equity
- Greenshoe option
- Additional 4%
- Maximum possible dilution
- 6.5%
- Funds raised by government this fiscal year
- Over Rs 21,000 crore from seven PSUs
- Unions' demand
- Immediate withdrawal of the proposed OFS
Quotes
Dr Chilakalapudi Kaladhar
Divisional Joint Secretary of the Insurance Corporation Employees’ Union
“The offer includes a base sale of 2.5 per cent of LIC’s paid-up equity, with an additional 4 per cent greenshoe option, potentially taking the total stake dilution to 6.5 per cent.”
thehansindia.com
“Diluting public ownership, he argued, would not serve the long‑term interests of policyholders, the economy, or the nation.”
thehansindia.com
Sources
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