Sebi Grants LIC 3 More Years To Achieve 10% Public Shareholding
Accordingly, with the Sebi's extension, the revised timeline for the insurance corporation to achieve 10 per cent public shareholding is on or before 16 May 2027
The Securities and Exchange Board of India (Sebi) has granted an additional three years of time to the Life Insurance Corporation of India (LIC) to achieve 10 per cent public shareholding, the insurance company informed stock exchanges on Wednesday.
Under Rule 19(2)(b)(iv) of the Securities Contracts (Regulation) Rules, 1957, a company must have a 10 per cent public shareholding in five years from the date of listing.
Accordingly, with the Sebi's extension, the revised timeline for the insurance corporation to achieve 10 per cent public shareholding is on or before 16 May 2027.
The central government has earlier granted a one-time exemption to Life Insurance Corporation of India (LIC) to achieve 25 per cent minimum public shareholding (MPS) within ten years since its listing on the exchanges.
The country's largest insurer, LIC, was listed on the exchanges in May 2022. The government had reportedly sold over 22.13 crore shares, or a 3.5 per cent stake in LIC, through initial public offering (IPO).
Reportedly, the government currently holds 96.5 per cent stake in the company.
The issue price for LIC's IPO was Rs 949.
Ever since its listing on the exchanges on 17 May 2022, with a discount of over 8 per cent over its issue price, the insurance company's share price has increased more than 11 per cent thereafter.
Established on September 1, 1956, the oldest and the largest insurance firm was introduced with a claimed objective of reaching out to all insurable individuals in the country, and providing them with adequate financial cover at a reasonable cost. (ANI)
