The Securities and Exchange Board of India (SEBI) has granted Life Insurance Corporation of India (LIC) an additional three years to achieve 10 per cent public shareholding, the insurance company announced to stock exchanges on Wednesday, May 15, 2024.

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Under Rule 19(2)(b)(iv) of the Securities Contracts (Regulation) Rules, 1957, a company must have a 10 per cent public shareholding in 5 years from the date of listing.

Accordingly, with the SEBI's extension, the revised timeline for the insurance corporation to achieve 10 per cent public shareholding is on or before May 16, 2027.

The central government has earlier granted a one-time exemption to Life Insurance Corporation of India (LIC) to achieve 25 per cent Minimum Public Shareholding (MPS) within 10 years since its listing on the exchanges.

The country's largest insurer, LIC, was listed on the exchanges in May 2022. The government had reportedly sold over 22.13 crore shares, or a 3.5 per cent stake in LIC, through initial public offering (IPO).

Reportedly, the government currently holds 96.5 per cent stake in the company.

The issue price for LIC's IPO was Rs 949.

Ever since its listing on the exchanges on May 17, 2022, with a discount of over 8 per cent over its issue price, the insurance company's share prices have been on a decline and its onward journey has been rough, to recover thereafter.

At the time of filing this report, the shares of LIC were 5.5 per cent higher at Rs 981.85.

Established on September 1, 1956, the oldest and the largest insurance firm was introduced with a claimed objective of reaching out to all insurable individuals in the country, and providing them with adequate financial cover at a reasonable cost.