LIC granted 3-year time to achieve 10% public shareholding.

Banking & Finance

On Monday, Life Insurance Corporation got the nod from the markets regulator SEBI for an additional three years to achieve a 10% minimum public shareholding in the company. Now, the insurance major needs to achieve the 10% MPS on or before May 16, 2027, said the company in an exchange filing. “Pursuant to Regulation 30 of Listing Regulations, this is to inform that the Securities and Exchange Board of India (“SEBI”) vide its letter dated May 14, 2024, has conveyed its decision, to grant additional time of 3 years to Life Insurance Corporation of India (“the Corporation”) to achieve 10% 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. Accordingly, the revised timeline for the Corporation to achieve 10% public shareholding is on or before May 16, 2027,” said LIC in a regulatory filing.


      SEBI mandates listed companies to have a minimum of 25% free float, with newly listed firms given three years to comply, while those with over Rs 1 trillion market capitalization post-issue have a five-year timeframe.

      LIC's stock surged nearly 6% to an intraday high of Rs 982.90 following SEBI's approval, with a 52-week high of Rs 1,175 and notable returns of 64% in the last year, 53.43% in the last six months, and 1.66% in the past five days.

     

 

     


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