Govt grants one-time exemption to LIC to achieve 25% Minimum Public Shareholding in 10 years
In a stock exchange filing, LIC said the Department of Economic Affairs has decided to grant a "one-time exemption to LIC to achieve 25 per cent MPS within 10 years from the date of listing i.E., till May 2032".
Life Insurance Corporation of India (LIC) informed on Thursday that the government has granted it a one-time exemption to achieve 25 per cent Minimum Public Shareholding (MPS) within 10 years. LIC — the country's largest insurer — was listed in May 2022 where the government had sold over 22.13 crore shares, or a 3.5 per cent stake in the insurance behemoth, through an Initial Public Offering (IPO).
The government currently holds 96.5 per cent stake in the company.
In a stock exchange filing, the state-owned insurer said the Department of Economic Affairs has decided to grant a "one-time exemption to LIC to achieve 25 per cent MPS within 10 years from the date of listing i.E., till May 2032".
Earlier this year, the government had amended the regulation so that listed state-run companies, including banks, will not need to comply with the rule requiring an MPS of 25 per cent even after their privatisation, if the government decides so "in public interest".
The exemption to the MPS rule was earlier available only to government-controlled companies.
The amendment, notified in January -- extending it to even after the sale of government stake -- is expected to make it more attractive for investors to acquire state-run companies.
In July 2021, the government had notified that all listed public sector units would be exempted from MPS.
Shares of LIC closed at Rs 764.55 apiece on the BSE, up 0.52 per cent over Thursday's close.
(With Agecny Inputs)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Senior Citizen Latest FD Rates: Know what major banks like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank are providing on fixed deposits
Gratuity Calculator: Rs 38,000 as last-drawn basic salary, 5 years and 5 months of service; what will be gratuity amount?
Top 5 Small Cap Mutual Funds with best SIP returns in 1 year: See how Rs 25,000 monthly investment has grown in each scheme
Top 7 SBI Mutual Funds With Best SIP Returns in 1 Year: Rs 25,000 monthly SIP investment in No.1 fund has jumped to Rs 3,58,404
11:01 PM IST