“Being one of the biggest financial institutions of the country, any move to privatise LIC will shake the confidence of the common man and will be an affront to our financial sovereignty. The very purpose of LIC to provide insurance coverage to socially and economically backward class at a reasonable cost will be defeated and motto will change from service to profit,” the statement said.

“Government came out with the idea (LIC listing). The details will follow and it will be in the interest of LIC and its policyholders. Interest of LIC and policyholders will be safeguarded,” he told PTI in an interview.

Sameer Kalra, a strategist at Target Investing, estimates the IPO to be valued between 910 billion rupees and 1.01 trillion rupees, given an average 12-month forward price-to-earnings ratio of 30 to 35 times. “That is the range in which all the life insurance companies got listed,” he said.

There are three benefits from the disinvestment of the LIC – it will be strengthened with the listing with share market, which requires reporting every month. It will also bring in accountability, transparency and efficiency,” the MP from Hazaribag said.To a query on the fate of policy-holders, he said all of them will get every benefit assured in their policies as there is no connection between the disinvestment initiative and policies.