NSELife Insurance Corporation of India Ltd. (LIC), has informed the exchanges that market regulator Securities and Exchange Board of India (SEBI) has granted an additional three years to achieve 10% public shareholding.Based on the extension, LIC can now achieve 10% public shareholding by May 16, 2027, according to the exchange filing.Currently, public shareholding in LIC stands at 3.5% as of March 31, 2024.
Based on this, the government still has to divest another 6.5% in the next three years to achieve the 10% minimum shareholding.LIC is India's largest IPO in history.
The government had divested only 3.5% stake in the ₹21,000 crore issue.The IPO opened exactly two years ago in May 2022.
The stock listed on May 17, underperformed for most of that year, before recovering in 2023.
The stock made new records earlier this year after crossing its IPO price of ₹949.The minimum public shareholding norms mandate at least 25% public float for all listed companies.
NSE
Life Insurance Corporation of India Ltd. (LIC), has informed the exchanges that market regulator Securities and Exchange Board of India (SEBI) has granted an additional three years to achieve 10% public shareholding.Based on the extension, LIC can now achieve 10% public shareholding by May 16, 2027, according to the exchange filing.Currently, public shareholding in LIC stands at 3.5% as of March 31, 2024. Based on this, the government still has to divest another 6.5% in the next three years to achieve the 10% minimum shareholding.LIC is India's largest IPO in history. The government had divested only 3.5% stake in the ₹21,000 crore issue.The IPO opened exactly two years ago in May 2022. The stock listed on May 17, underperformed for most of that year, before recovering in 2023. The stock made new records earlier this year after crossing its IPO price of ₹949.The minimum public shareholding norms mandate at least 25% public float for all listed companies. Last month, CNBC-TV18 had reported that SEBI may grant an exemption to some Public Sector Banks, other PSUs to meet the 25% MPS norms by August 2024.Five state-run banks - Indian Overseas Bank, UCO Bank, Central Bank of India, Punjab & Sind Bank and Bank of Maharashtra have government stake in excess of 75%.Shares of LIC have surged to the day's high post the announcement, currently trading 2.2% higher at ₹952.
