LIC gets 3-yr extension from Sebi to achieve 10% public shareholding

Life Insurance Corporation of India (LIC) has got a three-year-extension from the Securities and Exchange Board of India (Sebi) to achieve 10 per cent public shareholding, the state-owned firm told the exchanges on Wednesday.

LIC has to get its public shareholding to 10 per cent on or before May 16, 2027.

Sebi’s norms say a company must achieve 10 per cent public shareholding within three years from the date of listing. LIC was listed on May 17, 2022.

“…Sebi, through its letter dated May 14, 2024, has conveyed its decision to grant additional time of three years to Life Insurance Corporation of India to achieve 10 per cent public shareholding, i.e., within a period of five years from the date of listing. Accordingly, the revised timeline for the Corporation to achieve 10 per cent public shareholding is on or before May 16, 2027,” said the exchange filing.

As of March 31, 2024, public shareholding in LIC stands at 3.5 per cent. The government still has to divest another 6.5 per cent in the next three years for LIC to achieve the 10 per cent shareholding.

In December, the Finance Ministry had given LIC a one-time exemption from the 25 per cent public shareholding rule to ten years. The rule says a listed entity with a market capitalisation of more than Rs 1 trillion needs to reach the 25 per cent minimum public shareholding level within five years of listing.

First Published: May 15 2024 | 12:41 PM IST