- By Aditya Pratap Singh
- Wed, 15 May 2024 11:22 AM (IST)
- Source:JND
LIC Share: Life Insurance Corporation of India (LIC) on Wednesday announced that market regulator SEBI has granted it an extra three years to attain a 10 percent public stake. The Securities and Exchange Board of India, in its May 14, 2024 letter to LIC, has notified its choice to grant an extra three years to attain 10 percent public shareholding below Rule 19(2)(b)(iv) of Securities Contracts (Regulation) Rules, 1957, i.e., inside an interval of 5 years from the date of listing, LIC mentioned.
Consequently, the revised deadline for LIC to attain 10 percent public shareholding is on or earlier than May 16, 2027. Shares of LIC rose 3.92 percent to the day's excessive of Rs 967.50. The change was witnessed in round 2 lakh shares finally seen on BSE in the present day. The determine was larger than the two-week common quantity of 1.56 lakh shares.
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Turnover on the counter stood at Rs 19.06 crore, with market capitalization (m-cap) at Rs 6,08,433.15 crore. Final 12 months in December, the nation’s largest life insurance coverage firm had acquired a one-time exemption to attain a minimal public stake of 25 percent within 10 years from the date of listing, i.e., by May 2032.
As per SEBI guidelines, a company has to attain a minimum of 25 percent public shareholding within three years of listing or one 12 months of merger or acquisition. Furthermore, SEBI’s minimal public shareholding norms recommend that listed entities with a valuation of greater than Rs 1 lakh crore can meet 25 percent public shareholding within 5 years of listing. As of March 2024, the federal government held a 96.50 per cent stake within the firm.