LIC gets three more years to meet Sebi’s 10% public holding norm.
The Securities and Exchange Board of India (SEBI) has extended the deadline for Life Insurance Corporation (LIC) to achieve the mandated 10 per cent public shareholding.
Life Insurance Corporation (LIC) announced on Wednesday that the Securities and Exchange Board of India (SEBI) has extended the deadline for compliance with the 10 per cent public shareholding requirement by an additional three years until May 16, 2027.
Currently, the Government holds 96.50 per cent of LIC shares, with the public holding standing at 3.50 per cent.
In a regulatory filing, LIC stated, "SEBI, through its letter dated May 14, 2024, has granted a three-year extension to Life Insurance Corporation of India to achieve the 10 per cent public shareholding requirement, within five years from the date of listing." Consequently, LIC now has until May 16, 2027, to meet this revised target.
LIC, a prominent public sector entity, debuted on the stock exchanges on May 17, 2022. Under SEBI regulations, LIC was initially obligated to achieve a 10 per cent public shareholding within two years of its listing. Through an Initial Public Offering (IPO), the government divested over 22.13 crore shares, representing a 3.5 per cent stake in LIC, generating Rs 20,557 crore. The IPO's price range was set at Rs 902-949 per share.
Following this news, LIC's shares surged by 3.96 per cent to reach Rs 967.90 apiece in afternoon trading on the BSE.
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