LIC gets 3-year extension to achieve 10% minimum public shareholding; stock climbs 6%

Life Insurance Corporation of India (LIC) on Wednesday announced that markets regulator Sebi has granted it an additional time of three years to achieve 10 per cent public shareholding.

"This is to inform that Securities and Exchange Board of India vide its letter dated May 14, 2024 has conveyed its decision, to grant additional time of 3 years to LIC to achieve 10 per cent public shareholding under Rule 19(2)(b)(iv) of the Securities Contracts (Regulation) Rules, 1957, i.e., within a period of 5 years from the date of listing," the state-run insurer stated.

Accordingly, the revised timeline for LIC to achieve 10 per cent public shareholding is on or before May 16, 2027, it added.

Shares of LIC rose 5.58 per cent to hit a day high of Rs 983. On BSE, around 4.13 lakh shares were last seen changing hands today. The figure was higher than the two-week average volume of 1.56 lakh shares.

Turnover on the counter came at Rs 39.81 crore, commanding a market capitalisation (m-cap) of Rs 6,12,892.28 crore.

In December last year, the country's largest life insurer had received a one-time exemption to achieve 25 per cent minimum public shareholding within 10 years from the date of listing, i.e. till May 2032.

According to Sebi norms, a company is required to get a minimum public shareholding of 25 per cent within three years of listing or one year of the merger or acquisition.

In addition, Sebi's minimum public shareholding norms suggest that listed entities with a valuation of over one lakh crore could meet 25 per cent public shareholding within five years of listing.

As of March 2024, the government held a 96.50 per cent stake in the company.