LIC gets 3 more yrs for 10% public-holding rule
Govt holds 96.50% in state insurer, while public holding is 3.50%
image for illustrative purpose
The govt sold over 22.13 crore shares or a 3.5% stake in LIC through an IPO and mobilised Rs20,557 cr
New Delhi: Life Insurance Corporation (LIC) on Wednesday said markets regulator Sebi has granted an additional three years time till May 16, 2027, to comply with the 10 per cent public shareholding norm. Currently, Government holding in LIC is 96.50 per cent, while public holding is 3.50 per cent.
“Pursuant to Regulation 30 of Listing Regulations, this is to inform the Securities and Exchange Board of India vide its letter dated May 14, 2024, has conveyed its decision, to grant additional time of three years to Life Insurance Corporation of India to achieve 10 per cent public shareholding... i.e., within a period of 5 years from the date of listing,” LIC said in a regulatory filing.
Accordingly, the revised timeline for the Corporation to achieve 10 per cent public shareholding is on or before May 16, 2027, LIC said. Public sector behemoth LIC listed itself on the bourses on May 17, 2022. As per Sebi norms, LIC was required to achieve 10 per cent public shareholding within 2 years of listing in the capital market. The government sold over 22.13 crore shares or a 3.5 per cent stake in LIC through an Initial Public Offering (IPO) which fetched the government Rs20,557 crore. The price band of the issue was Rs902-949 a share. Shares of LIC jumped 3.96 per cent to Rs967.90 a piece in afternoon trade on the BSE.
