 "LIC gets one-time exemption from 25% minimum public shareholding rule")
State-owned Life Insurance Corporation of India (LIC) said on Thursday the Finance Ministry has given it a one-time exemption from the 25 per cent public shareholding rule.
The rule says a listed entity with a market cap of more than Rs 1 trillion needs to reach the 25 per cent minimum public shareholding threshold within five years of listing.
LIC listed on the bourses on May 17, 2022, meaning it had to meet the 25 per cent MPS rule by 2027. However, it has received an extension of 10 years and would need to meet the criteria by May 2032.
In a regulatory filing, India's largest life insurer said, "The Department of Economic Affairs, Ministry of Finance vide Office Memorandum dated December 20, 2023, has decided in the public interest, to grant one-time exemption to Life Insurance Corporation of India to achieve 25 per cent Minimum Public Shareholding (MPS) within 10 years from the date of listing ie, till May 2032 under Rule 19A (6) of the Securities Contract (Regulations) Rules (SCRR) 1957."
In May 2022, LIC divested 3.5 per cent equity through an initial public offering. The shares of the company were listed at a discount of over 8 per cent, fetching Rs 20,557 crore to the exchequer.
On Thursday, the company's shares closed 0.52 per cent in the green at Rs 764.55 apiece on BSE.
Earlier this week, LIC said it has sold over 2 per cent stake in Dixon Technologies India Limited, decreasing the number of shares held from 2,997,913 to 1,794,395. 'Business Standard' earlier reported that LIC's group premium dropped by 37.48 per cent to Rs 11,649.54 crore in November from Rs 18,635.93 crore in November 2022.