Life Insurance Corporation of India (LIC), a government-owned company, announced on Thursday that it has been granted a one-time exemption from the 25% public shareholding requirement by the Finance Ministry.
As per the rule, the companies with a market cap exceeding Rs 1 trillion must attain the 25% minimum public shareholding within five years of listing. LIC, which listed on May 17, 2022, was initially required to meet this threshold by 2027. However, it has been granted a 10-year extension, now aiming to fulfill the criteria by May 2032. The decision, made in the public interest, allows LIC to achieve the 25% Minimum Public Shareholding within the extended timeframe.
In May 2022, LIC conducted an initial public offering, divesting 3.5% equity. Despite shares being listed at an 8% discount, the offering generated Rs 20,557 crore for the exchequer.
LIC’s recent move to sell over 2% stake in Dixon Technologies India Limited was also noted, reducing its share count from 2,997,913 to 1,794,395.
Notably, LIC’s group premium experienced a 37.48% decline to Rs 11,649.54 crore in November compared to November 2022, as reported by Business Standard.
The shares of the company today ended at Rs 764.55.
