Mumbai: SEBI has extended the deadline for LIC to acquire 10% public shareholding by three years. The decision, which was communicated through a letter dated May 14, 2024, gives LIC time till May 16, 2027, to meet this requirement.
LIC was listed on stock exchanges on May 17, 2022, following a Rs 21,000 Crore IPO, which resulted in the government’s stake being reduced to 95%.
Rule 19(2)(b)(iv) of the Securities Contracts (Regulation) Rules, 1957 requires that companies initially sell at least 5% of their shares to the public. Additionally, public shareholding will have to increase to at least 10% within two years from the date of listing and to 25% within five years. After the news, LIC shares rose by more than 6% on Wednesday.
Meanwhile, LIC Housing Finance on Wednesday reported profit of Rs 1,091 Crore for the quarter ended March – down 7.5% from a year ago.
