SEBI grants LIC extra 3 years to achieve minimum public shareholding

May 15, 2024 

SEBI nod to LIC: It received an approval from the markets regulator SEBI for an additional three years to achieve a 10% Minimum Public Shareholding (MPS).

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 asks all the listed companies to have a minimum of 25% free float. Now, for the companies listed newly, SEBI gives them three years time. But companies having over Rs 1 trillion of market capitalisation post-issue needs to meet the 25% MPS rule within five years.

LIC’s stocks rose almost 6% to an intraday high of Rs 982.90 post the SEBI nod. It has a 52-week high of Rs 1,175, which it touched on February 09.

In the past five days, LIC’s stocks have risen 1.66% and 53.43% in the last six months. It has given a return of 64% in the last year. Please note that the stock’s closing date has been chosen as May 14.

[The Financial Express]