LIC's shares surged by more than 5 per cent during the morning trading session on Wednesday after the market watchdog, Sebi, granted the firm an additional time of 3 years to meet the minimum public shareholding requirements.
"Pursuant to Regulation 30 of Listing Regulations, this is to inform that 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 to achieve 10 per cent 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," LIC stated in a regulatory filing.
At 11:40 am, the shares of the public sector enterprise were trading at Rs 977.20 price level, up by 4.96 per cent on the National Stock Exchange (NSE).
Last year, the Ministry of Finance had provided the Life Insurance Corporation of India with a special exemption regarding the 25 per cent Minimum Public Shareholding (MPS) regulation.
This exemption allowed LIC to reach the required 25 per cent MPS within 10 years of its listing, extending the deadline until May 2032.
As per SEBI regulations, listed firms have to maintain a 25 per cent public float, with newly listed companies given a three-year grace period to meet this obligation.
For companies with a post-issue market capitalization exceeding Rs 1 trillion, the market watchdog had extended the deadline for getting the 25 per cent Minimum Public Shareholding to five years.
On an annual basis, the shares of the company have delivered a return of around 72 per cent on NSE.
