LIC Gets 10-Year Exemption To Meet 25% Minimum Public-Float Rule
Listed entities with a valuation of over Rs 1 lakh crore need to have at least 25% public shareholding within 5 years of listing.
The Union government has granted a one-time exemption to Life Insurance Corp. for achieving a minimum 25% public shareholding by May 2032.
The Department of Economic Affairs cited "public interest" for its decision to grant the exemption for 10 years, the state-run insurer said in its exchange filing on Thursday.
Under SEBI's minimum public-shareholding norms, listed entities with a valuation of over Rs 1 lakh crore need to have at least 25% public shareholding within five years of listing.
In 2021, the Union government exempted public-sector entities from this norm. As of September 2023, only 3.5% of LIC is owned by the public, while the rest, 96.5%, is held by the government.
The government raised Rs 21,000 crore through the initial public offering in May 2022 by selling a 3.5% stake in the nation’s biggest life insurer.
The state-run insurer was listed on the exchanges on May 17, 2022, at Rs 867.2 apiece on the BSE, a discount of 8.6% to its IPO price.
Shares of LIC closed 0.73% higher at Rs 764.50 apiece on the NSE, as compared with a 0.50% decline in the benchmark Nifty 50.
