LIC gets three year extension from SEBI to meet MPS norms, stock rises 5%

As per the revised timeline, LIC has until May 16, 2027, to achieve the 10% minimum public shareholding (MPS) goal.

In an exchange filing, LIC said, "Securities and Exchange Board of India (SEBI) vide its letter dated May 14, 2024 has conveyed its decision, to grant additional time of 3 years to Life Insurance Corporation of India (the Corporation) to achieve 10% public shareholding under Rule 19(2)(b)(iv) of the Securities Contracts (Regulation) Rules, 1957, i.e., within a period of 5 years from the date of listing. Accordingly, the revised timeline for the Corporation to achieve 10% public shareholding is on or before May 16, 2027".

Following the announcement, shares of the public sector insurance company jumped 5.1% to ₹979.3 apiece on the National Stock Exchange. It was trading at ₹977.9, up 5% on the BSE.

Year-to-date, the stock has risen by 13.10%, and over the past year, it has gained 70%. The insurance giant's market capitalisation is more than ₹6 lakh.

LIC's shares were listed on the NSE and BSE on May 17, 2022, and it faced a May 2024 deadline to meet the minimum public shareholding (MPS) norm. This extension gives the company additional time to attract investors and increase public participation.

LIC is yet to release the financial results for the fourth quarter of the financial year 2023-24. In Q3 FY24, the company's net profit stood at ₹9,441 crore, up 49% from ₹6,334 crore in the corresponding period last year.