Chennai, Feb 15 (IANS): Tamil Nadu Chief Minister M.K. Stalin has opposed the Central government's decision to divest 5 per cent stake in the Life Insurance Corporation of India (LIC).

"An ideal government builds institutions instead of involving itself in a selling spree. I urge the Union government to rollback this ill-thought-out decision and save LIC India," Stalin said.

According to the Chief Minister, the Central government's act of filing the Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to sell 5 per cent of its stake is undoubtedly a move towards privatisation, which is quite undesirable.

It goes without saying that this is neither in the interest of our people, nor the organisation, Stalin said.

LIC over the years has catered to the needs of crores of Indians, earned their trust and provided social security with its efficient functioning, Stalin added.

The life insurer said it is ranked fifth globally in terms of gross written premium by comparing its premium for fiscal 2021 to that of its global peers' premium income for 2020.

The LIC is ranked 10th globally in terms of total assets, comparing its assets as on March 31, 2021 with other life insurers' assets as on December 31, 2020, the DRHP said.

The Central government is offering for sale up to 316,249,885 equity shares with a face value of Rs 10 to the public.

The offer also includes not more than 5 per cent reservation for its eligible employees and not more than 10 per cent for its policyholders.