LIC granted three year time to achieve 10% public shareholding
As of March 2024, the government held a 96.50 percent stake in the company.
State-run insurance giant Life Insurance Corporation of India (LIC) today announced that it has got a three-year extension from markets regulator Sebi to comply with minimum public shareholding norms.
According to the exchange filing made by the company, "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 percent public shareholdings under Rule 19(2)(b)(iv) of the Securities Contracts (Regulation) Rules, 1957, i.e., within 5 years from the date of listing," the state-run insurer stated.
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Therefore, the revised timeline for LIC to achieve 10 per cent public shareholding is on or before May 16, 2027, it added.
Last year in December, the insurance PSU had received a one-time exemption to achieve a 25 percent minimum public shareholding within 10 years from the date of listing, i.e. till May 2032.
As per the Sebi norms, a company is required to get a minimum public shareholding of 25 percent 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.
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