Lossmaking I.P.O of L.I.C of India

 https://www.ndtv.com/business/lic-2-0-flop-wipes-ipo-wealth-of-near-18-billion-more-pain-ahead-3101151

"LIC 2.0" Flop Wipes Over $18 Billion Of IPO Wealth; More Pain Ahead?

LIC IPO losses of over $18 billion is a staggering wealth wipeout.

Edited by Rahul Karunakar Updated: June 26, 2022 10:40 am IST

India's biggest-ever initial public offering (IPO) of Life Insurance Corporation (LIC), which was touted as the next phase of the country's insurance behemoth, "LIC 2.0", has flopped since tepid listing at a discount on benchmark bourses, with losses worth nearly a third in valuation.

LIC's stock fell on Friday to ₹ 661.70, down 3.2 per cent for the day, and over 30 per cent lower from its issue price of ₹ 949 per share, turning it into one of the top destructors of wealth among IPOs this year after experiencing a near $18 billion market value wipeout.

Indeed, to put the magnitude of losses in context, having plunged nearly a third in value since its May 17 debut, LIC IPO now ranks at the top in capitalisation loss since issue, starting with the discounted listing and continuous selling pressure.

That despite a mandatory lock-up period for anchor investors for the first 30 days.

While that regulatory rule was to stop anchor investors from offloading shares immediately after listing, it has not stopped the bleeding in LIC shares.

The mandatory lock-in period for 50 per cent of investments from anchor investors, or the qualified institutional buyer (QIB), ended on June 10. Still, the remaining 50 per cent of their money will be locked-in for 90 days from the listing date.

The government had said it is "concerned" about the temporary blip in LIC's scrip and that the insurer's management will look into these aspects and raise shareholders' value.

"We are very concerned about the temporary blip in LIC share price. People will take time to understand (the fundamentals of) LIC. LIC management will look into all these aspects and raise the shareholders' value," DIPAM secretary Tuhin Kanta Pandey had said earlier this month.

But what has not helped the country's insurance giant is the disappointing earnings results and a lack of communication from the firm's management on its growth strategy and plans.

Since its flop debut on the stock exchanges, the scrip has touched a new low of ₹ 650 and a high of ₹ 920 a few days after its listing, which is well below its offer price of ₹ 949.

The country's biggest insurer and the largest domestic financial investor's market capitalisation (m-cap) fell to ₹ 4.2 lakh crore on Friday, with over ₹ 1.8 lakh crore wiped out.

At the issue price of ₹ 949, the company's m-cap stood slightly over ₹ 6 lakh crore.

Rising interest rates and global inflation have hurt foreign demand for Indian shares.

With no let-up from global markets sell-off expected anytime soon and India's stock market facing unprecedented selling pressure by foreigners, more pain is in store for LIC shares.

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In the light of the above news-report, what can we, the long-suffering resigning ex-employees of L.I.C of India say, but the same; that we have been repeating all these days: 

L.I.C of India's management officials (read Managing Board of Directors) lack communication skills, transparency, empathy, integrity, expertise, foresight and judgment. 

ABOVE ALL, VALUES!

We can feel the pain of the investors whose hard-earned money has gone down L.I.C's black-hole. Just like our hard-earned arrears and difference (due to wage revision) in statutory retirement benefits.

Appalling state of affairs...

We hope that at least now, the investors will be more vigilant! 

After all, all that glitters is not gold!

 

 

 

International HR Day - Is LIC of India aware of it?

 Dear friends,

      We, request everyone to peruse the blog-post as carried below, to know the extent of the Corporation's malpractices as far as we resigning ex-employees are concerned. To the Corporation, we are persona non-grata!

      Today, we also take a pledge to steadfastly and vigorously pursue our case regarding illegal repudiation of our hard-earned back wages; i.e. arrears and other dues; till its logical conclusion.

      We will walk hand in hand and take a stand that L.I.C of India MUST pay all our dues immediately. We hope and pray that the Government of India supports our stand and proactively helps us in realizing all our hard-earned money with interest at the earliest. Even the prospective investors in L.I.C of India's I.P.O., newly appointed law firms and statutory auditors must stress on the Managing Board of Directors to pay up; clear this long-outstanding, (unaccounted for) liability running into several crores of rupees since August, 1997 (more than two decades!) and clear the Balance Sheet of the Corporation.

      The readers are requested to peruse my earlier blog-post dated 24th January, 2021, concerning the estimate of wage revision arrears repudiated unconstitutionally, unethically and remorselessly by our ex-employer - Life Insurance Corporation of India.  

      Our trust in our ex-employer L.I.C, has been betrayed, not empowered, by none other than L.I.C which needs a crash course in Human Resources Management/Development. Only holding seminars ad nauseum on this topic is redundant if it can't walk the talk and treat its employees fairly and graciously.

                       We finally urge L.I.C of India to walk the talk! (Read "Pay Up") ASAP.

The long-suffering, resigning, ex-employees of L.I.C of India!

SATYAMEVA JAYATE!    

P.S.  We wonder how the officials in the Managing Board of Directors of L.I.C of India even get sound sleep at night, after defrauding scores of resigning ex-employees of their hard-earned dues like arrears arising due to wage revision, difference in Statutory Retirement benefits like Provident Fund and Gratuity; despite the Supreme Court's decision regarding rendering of the repudiation clause as 'ultra vires' and its verdict favoring such employees, in several cases? 

No prick of conscience?

D-Day - L.I.C of India's IPO

 

L.I.C of India is currently celebrating its Golden Jubilee of "Betrayal of the Good Faith of its Resigning Ex-employees". It has been willfully, illegally and unjustly repudiating their wage revision arrears' payments and other allied dues like difference in Statutory Payments like Gratuity, P.F. etc., since 1997. (Despite a Supreme Court judgment in 2007, favoring payments to the resigning ex-employees; the Corporation insists on repudiation! Which means "Wilful Contempt of Court" by L.I.C of India!) 

 

Today, L.I.C of India is offering its I.P.O to the public for subscription.

 

Prospective investors, think very carefully before investing!

 

Do peruse this blog for the details about the R.T.I appeals that I made against L.I.C and my harrowing struggle to get information from the Corporation. Kindly note that the Corporation hasn't answered an overwhelming majority of my well-framed questions for reasons best known to it! This, despite it being a renowned Public Authority and bound to do so under the R.T.I Act.

 

My lone crusade completes 12 long years!

And yet, the said payments are pending....

 

Clearly, L.I.C of India doesn't respect its long-serving employees. So will it respect its new shareholders?

Only time will tell....

 

Meanwhile, "FOREWARNED IS FOREARMED!"

An urgent plea to the Supreme Court of India - Wage Revision Arrears' Payment

 Source: https://timesofindia.indiatimes.com/india/sc-saves-lic-of-huge-financial-burden-ahead-of-ipo/articleshow/91137837.cms

SC saves LIC of huge financial burd ..

Read more at:
http://timesofindia.indiatimes.com/articleshow/91137837.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

      Kindly refer to the above-mentioned news item which reports that L.I.C of India has been saved by the Supreme Court; from regularizing the temporary workers who have been demanding the same through a prolonged legal process.

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      We, the long-suffering, resigning ex-employees of L.I.C of India request the Honorable Supreme Court to save us. Kindly step in and ensure that we get our legally rightful dues (repudiated wage revisions arrears' payments and difference in the Statutory Benefits - P.F. and Gratuity) from the Corporation before the I.P.O commences.

       The Corporation doesn't have any reason to repudiate our back-wages. The wages have been consistently repudiated since 1st August 1997, as per the Corporation's submission in reply to my R.T.I appeal. The repudiation itself is totally illegal as rightly observed and analyzed by the Supreme Court in its 2007 judgement; in which it has even stated that such repudiation is beyond the powers of the Chairman of the Corporation. The Chairman has decided a cut-off date for wage revision but shouldn't make a distinction between 2 classes of employees (voluntarily resigning and resigning). All resigning employees are equal in the eyes of the law. Wages are the constitutional right of all employees.

       It's interesting to note that the Corporation is responsible for the delay in implementation of the Charter hence can't make the employees who were on the salary roll of the Corporation from the effective date of wage revision; as the scapegoats in the bargain. 

         We'd like to apprise the Supreme Court that the Corporation, a premier profit-making institution, continues to include the Clause 3B ii which has been declared as Ultra Vires by the Supreme Court in its judgement dated 2007; in all its Charters for Wage Revision thereafter too. This is wilful Contempt of Court. 

                                      JUSTICE DELAYED IS JUSTICE DENIED.

       Not only does it indicate the Corporation's malafide intentions, but also its propensity to cock a snook at the Constitution and the judiciary. If it can't respect its obligations towards the sincere ex-employees who have put in long hours and years of service, how will it ever respect its obligations towards its other stake-holders in future? What's the guarantee?

       The Corporation has consistently betrayed the uberrima fides of its resigning ex-employees for more than two decades (25 years!) 

        My R.T.I Appeal itself is 11 years old! I've been fighting for our rights since 2010. All the details of my lone but determined struggle, along with scanned documents are available on this blog. Several similarly duped ex-employees (including those from the Corporations' sister concerns) have approached me and expressed willingness to join this seemingly unending fight for justice. Their comments/observations/opinions/experiences are also there on this blog, as are various judgements regarding the Corporation's cases.

        So we finally urge the Supreme Court to end our misery once for all by stepping in to grant us our legally rightful dues. It is our only HOPE!

                                                     SATYAMEVA JAYATE!

                        Meanwhile, prospective share-holders of L.I.C of India - BEWARE! 

            Who knows, you could be the next to be duped by the Corporation! God Forbid.

SC saves LIC of huge financial burd ..

Read more at:
http://timesofindia.indiatimes.com/articleshow/91137837.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

SC saves LIC of huge financial burd ..

Read more at:
http://timesofindia.indiatimes.com/articleshow/91137837.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Happy Women's Day! Women's Empowerment, the L.I.C Way!

          The topmost echelons of the management of L.I.C of India consist of many women. 

 

 Unfortunately, while they are apparently interested in women's empowerment, (in our opinion,  

 

just talking about it!) their actions belie their attitude. There are some who deliver powerful 

 

lectures on women's empowerment but when it comes to actually walking the talk, develop cold 

 

feet and coolly look the other way!

          

          My tryst with the R.T.I appeal to the organization for getting my arrears and answers to queries; proved the above-mentioned sad truth. If I'd have got all my answers, I'd have also felt empowered, but alas, these ladies have forgotten the very meaning of empowerment, by choosing to be the Devil's Advocate (literally)!
          

          True empowerment can be attained only by supporting others. If ladies deprive other ladies (and men!) of their legally rightful dues and also justify it, it's a matter of concern and shame. Surely, they can use their own sense of judgment, reasoning and logic to make the men in their team aware of their flawed and unjust decisions instead of towing their line and trying to save their jobs and maintaining the status quo!
          

          These ladies have not shown the slightest bit of support to the cause of the resigning employees; arbitrarily and unjustly not being given their arrears and difference in retirement benefits, by the management.

          So one can just conclude that women can be women's best friends and worst foes too!

          Once we get all our dues from the Corporation, I will be filling the form for pledging to do Dehadaan (body-donation). That is my vow. 

          In case of my earlier demise, my family will be donating my organs/body to my chosen hospital or to the nearest hospital.

My R.T.I. queries to L.I.C. of India

 

1.      What is the official reason, because of which my arrears payment and difference in retirement benefits were repudiated during Wage Revision payment in the latest Wage Revision Charter dated 11^th October, 2010?

2.      Kindly provide me a copy of the gazette and official notification, along with information about which specific provisions of the gazette and official notification justify or state that I should not be given the arrears due w.e.f August 2007?

3.      Please furnish me a copy of Names, Addresses, Telephone/Mobile nos., Branch Nos., Branch addresses, D.O. Nos. and D.O. addresses of all the employees of LIC of India, who were denied arrears’ payment under the Charter dated 11^th October, 2010.

4.      Were any of the above employees paid the arrears amount by LIC of India?  If so, why, when and by whom? Names and other details as in (3) above, to be furnished. Documentary proof to be provided by LIC of India. 

5.      Is there any case filed by any such employee, whose arrears’ payment was repudiated by LIC of India, against LIC of India; in respect of any such Charter.  If so, details about the case—Name of the appellant, B.O. and D.O. addresses, residential and official address, telephone/mobile no., Charter Date (in respect of any such charter, including the latest one) and copy of the judgement.

6.      What was the outcome of the case as in (5) above?  Documentary proof to be provided by the LIC of India.

7.      No. of resigning employees all over India and the total amount repudiated (of arrears’ payment by LIC of India) with bifurcation in respect of each such employee; in the Charter dated 11^th October, 2010 applicable w.e.f August 2007.

8.      No. of employees, names, addresses, telephone/mobile nos. and amounts repudiated respectively (in respect of each one) under all the Charters of Wage Revisions (Previous 5 Charters, excluding the latest one) and their Branch Nos., Addresses of Branches, D.O. Nos., Addresses of D.O.s also to be provided.

9.      Since which year or which Charter has LIC of India started repudiating arrears’ payment legitimately due, to its resigning employees; and why?

10.  Details of the exact legal provisions and clauses on the bases of which LIC of India has arrived at its premise of refusing to pay Arrears’ payment and subsequent difference in retirement benefits to its resigning employees.

11.  Who takes this crucial decision to repudiate arrears’ payment to the employees?  The Government of India or LIC of India?  Details to be provided with documentary proof.

12.  The total no. of transactions effected under my S.R. No. 441595 from 1^st August, 2007 to 2^nd July, 2010, the last date of my service in LIC of India.

13.  Copy of the note or letter put up to the Chairman, LIC of India for the final decision regarding my resignation.

14.  Copy of the final approval of my resignation by LIC of India.

15.  Documents pertaining to the Board Meetings of LIC of India wherein this resolution to repudiate arrears of resigning employees; has been taken. Kindly provide Minutes of the Meetings with signatures of all the attending members. 

16.  With reference to my representation letters dated 20-10-2010 (addressed to the Executive Director, Personnel, LIC of India) and 20-11-2010 (addressed to the Chairman, LIC of India), sent through Speed Post and subsequent e-mails dated 22-10-10, 26-10-10, 01-11-10, 08-11-10, 13-11-10, 16-11-10, 20-11-10, 27-11-10, 04-12-2010, 06-12-2010, 09-12-2010, 13-12-2010, 21-12-2010, 24-12-2010, 25-12-2010, 30-12-2010, 04-01-2011, 13-01-2011, 17-01-2011, 28-01-2011, 31-01-2011, 08-02-2011; why were they not replied to immediately?  Why was there an inordinate delay of 8 months for a single line unsatisfactory reply vide letter dated 14-03-2011, received by me on 07-06-2011, that too replied to; not by the addressees of my letters, but by the lower office (Pune Divisional Office No.1)?  Kindly provide an explanation letter. 

17. Copy of the LIC of India, Staff Regulations, 1960 and subsequent modifications/amendments therein, if any.

 18.  Names, phone numbers and official addresses of the current Chairman, Officiating Chairman, Executive Directors, Managing Directors and Sr. Divisional Manager of Pune Divisional Office 1; LIC of India.

19.  Please provide a list of applicants for Wage Revision arrears’ payments in respect of the Charter dated 11^th October, 2010 during the last 16 months, giving names, dates of application and dates on which replies were issued by LIC of India. 

20.   What are the factors due to which the Wage Revision Charter is delayed inordinately, every time that it is legitimately due? 

21.   a) Does the LIC of India, Staff Regulations, 1960 and subsequent modifications/amendments therein, if any, contain any clause wherein it is mentioned that arrears payment after Wage Revision due to a Charter notification, may be denied to an employee on roll of the LIC of India in the period for which the Charter has been announced?

              b) If so, kindly point out the requisite provision or clause with adequate, satisfactory explanation/rationale.

              c) Does this denial of arrears payment and difference in retirement benefits, agree in principle, with the labour laws applicable in India?

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The copyright of this write-up is with Mrs. Priya Ramesh Swaminathan. 

 

L.I.C of India gave the answers to only 3 questions, that too half-baked! In the words of the C.P.I.O of the Western Zonal Office of the Corporation, L.I.C didn't want to open a Pandora's box, by replying to my queries. He mockingly and condescendingly told me that asking for answers from the Corporation was like breaking my head against a brick wall and also that the Corporation would never answer my queries. He was also disturbed that I had asked for penalty as per the R.T.I Act to be imposed on him and L.I.C of India for not answering my questions within the mandatory time-frame. With audacity, he told me that my case would be closed in a month's time and nothing would come of it! He challenged me to approach the High Court. Then he asked me to treat his phone call to my mobile number as "Off the Record"! 

 

If this is not intimidation and harassment of an ex-employee, what is? Shame on the Corporation and its officials who treat the hard-working ex-employees who have resigned for reasons beyond their control; like dirt! And we are just asking for our legally rightful dues!

 

But I placed it on record in my First and Second Appeals to the Information Commissioner and even squarely confronted him during the videoconferencing session at N.I.C. He blatantly lied that he had never called me up! I retorted by saying that he was lying. The I.C. took cognizance and then asked him to be more transparent (read - honest in his dealings) in future! 

 

We, the resigning and long-suffering ex-employees of L.I.C of India are still awaiting the remaining answers, with bated breath. And of course, payment of our dues with the requisite accrued interest!

No file notings with L.I.C of India regarding wage revision recommendations

 The following document shows how L.I.C of India, a premier, government run enterprise takes important decisions such as wage revision and repudiation of the resigning ex-employees hard-earned wages which are their constitutional right.

It has submitted the following document in response to my R.T.I query which reveals that it has NO FILE NOTINGS REGARDING WAGE REVISION RECOMMENDATIONS! 

 Note the point in the document that says "File notings regarding wage revision recommendations of LIC do not exist. Hence cannot be provided."

Isn't it absolutely shocking that this insurance behemoth doesn't even consider it necessary to mention/approve/ratify any of its wage revision decisions including the ones that cruelly/ illegally/unjustly deprive its resigning, ex-employees of their due, enhanced, back-wages and ensuing difference in Statutory Retirement Benefits?

Since this repudiation goes way back to 25 years, the Corporation, out of sheer herd mentality and an absolute and pathetic lack of application of mind; keeps on committing the same blunder ad nauseum and to the utter financial loss of its hapless resigning, ex-employees.

Interestingly, even the Finance Ministry, that ratifies the Wage Revision Charter doesn't deem it fit to ask for the same! So the cavalier attitude and approach is replicated at all levels. 

Besides, we wonder with amazement and dismay about what is the criteria for ratification then? If there are no criteria, doesn't the whole exercise become arbitrary, that is unbecoming and just not acceptable for an institution of L.I.C's caliber!

If there are no reasons for repudiation of arrears, how can they even be repudiated, that too since 1997? L.I.C could not give me any reason to repudiate the arrears. 

Surely the Corporation understands that sound reasoning, honesty, transparency, ethics and empathy are required to run the affairs of such a large, public sector enterprise? It can't act like a petulant, recalcitrant kid that makes off with someone's belongings (read - our wages) and doesn't return them at all!

We can only hope and pray that it is better governed and administered in the  days to come or it will not take long for it to plunge into an ABYSS OF NO RETURN OR REDEMPTION.