SEBI Extends LIC’s Deadline
The recent decision by the Securities and Exchange Board of India (SEBI) to grant Life Insurance Corporation of India (LIC) an additional three years to achieve a 10% minimum public shareholding (MPS). Here’s a detailed breakdown:
- SEBI Approval:
- LIC received approval from SEBI for an extension of three years to achieve a 10% minimum public shareholding in the company.
- The decision was conveyed to LIC via a letter dated May 14, 2024, allowing LIC to fulfill the requirement by May 16, 2027.
- Regulatory Filing by LIC:
- LIC made a regulatory filing pursuant to Regulation 30 of Listing Regulations, informing about SEBI’s decision.
- The revised timeline for LIC to achieve the 10% public shareholding is on or before May 16, 2027.
- SEBI Guidelines:
- SEBI mandates all listed companies to maintain a minimum of 25% free float.
- Newly listed companies are given three years to comply with this requirement.
- However, companies with a market capitalization exceeding Rs 1 trillion post-issue must meet the 25% MPS rule within five years.
- Market Response:
- Following SEBI’s nod, LIC’s stocks surged by almost 6% to an intraday high of Rs 982.90.
- The stock’s 52-week high is Rs 1,175, reached on February 09.
- In the last five days, LIC’s stocks have risen by 1.66%, and in the last six months, they have increased by 53.43%. Over the last year, LIC has provided a return of 64%.
