LIC gets 3-yr extension from Sebi to achieve 10% public shareholding
State-owned insurance giant now has to meet regulatory requirement on or before May 16, 2027
 "LIC gets 3-yr extension from Sebi to achieve 10% public shareholding")
Life Insurance Corporation (LIC) of India has been granted a three-year extension by the Securities and Exchange Board of India (Sebi) to achieve a 10 per cent public shareholding, the state-owned firm announced to the exchanges on Wednesday.
LIC is required to increase its public shareholding to 10 per cent on or before May 16, 2027.
LIC shares surged by 6.3 per cent on the BSE, closing the day at Rs 989.8 per share, while the broader indices were down 0.16 per cent.
According to Sebi norms, a company must attain a 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 LIC additional time of three years 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," stated the exchange filing.
As of March 31, 2024, public shareholding in LIC stands at 3.5 per cent. The government still needs 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 granted LIC a one-time exemption from the 25 per cent public shareholding rule for 10 years. The rule stipulates that a listed entity with a market capitalisation of more than Rs 1 trillion must reach the 25 per cent minimum public shareholding level within five years of listing.