LIC Share Price: There is relief news for the country's largest insurance company Life Insurance Corporation of India. LIC has got 10 years time to bring public shareholding up to 25 percent. LIC can now reduce public shareholding to 75 percent by 2032. At present the public share holding in LIC is only 2.55 percent.
LIC said in its regulatory filing on the National Stock Exchange that the Department of Economic Affairs under the Ministry of Finance has given a one-time permission to LIC to achieve the target of 25 percent minimum public share holding in public interest on December 20, 2023. Time given is 10 years from the date of listing on the stock exchange till May 2023. In fact, all companies listed on the stock exchange have to keep public shareholding at least 25 percent.
The stock exchange gives up to 5 years time to big companies to bring the public shareholding up to 25 percent. But the government has issued an order to LIC and given time of up to 10 years. LIC was listed on the stock exchange on May 17, 2022. Earlier, LIC had to bring the minimum public share holding to 25 percent by 2027. But now the government has given time of up to 10 years.
If we look at the shareholding pattern of LIC, the government holds 96.5 percent stake in LIC. Public shareholders hold 2.55 percent, foreign investors hold 0.1 percent, domestic institutional investors hold 0.84 percent. In the next 10 years, LIC will have to reduce public shareholding from 96.5 percent to 75 percent. Government can sell LIC shares through Offer for Sale, FPO in the next 10 years.
In the trading session of Thursday, December 21, LIC stock closed at Rs 764.50 with a rise of 0.43 percent. However, the stock is still trading below its IPO price of Rs 949.
Get more latest business news updates