LIC: SEBI (Securities and Exchange Board of India) has given a three-year extension to Life Insurance Corporation of India (LIC) to meet the minimum public shareholding rules. State-owned company LIC has given this information in an exchange filing on Wednesday. This news may come as a relief to investors, as it averts the possibility of supply disruption following the government's offer for sale to meet the Minimum Public Shareholding (MPS) norms.
With SEBI's decision, LIC has got approval to acquire 10 percent minimum public shareholding within five years from the date of listing. “The revised deadline for LIC to achieve 10 per cent minimum public shareholding is on or before May 16, 2027,” the filing said.
LIC shares rise today on the basis of news
Shares of LIC today reached Rs 970.20 with a rise of Rs 39.20 or 4.21 per cent. Its shares have seen a surge due to the news of extension of deadline for minimum public shareholding.
LIC has got a deadline of five years
According to SEBI rules, all listed companies are required to maintain a minimum public shareholding float of 25 percent. Newly listed companies are given a period of three years. However, companies with post-issue market cap of more than Rs 1 trillion have a timeline of five years to meet the 25 per cent MPS rule.
Government's majority stake in LIC
Last December, the Finance Ministry had exempted LIC from following the 25 percent MPS (minimum public shareholding) criteria till 2032. After this, a rise was seen in the stock of PSU Insurance Company. The government holds 96.5 percent stake in LIC. In May 2022, the central government had sold 3.5 percent stake in LIC IPO through an offer for sale worth about Rs 21,000 crore.
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