The federal government has granted a one-time exemption to Life Insurance coverage Company of India (LIC) to realize 25 per cent minimal public shareholding (MPS) inside 10 years, the state-owned insurer stated on Thursday.
The nation’s largest insurer LIC was listed in Could 2022. The federal government had bought over 22.13 crore shares, or a 3.5 per cent stake in LIC, by way of an Preliminary Public Providing (IPO).
The federal government presently holds 96.5 per cent stake within the firm.
In a inventory trade submitting, the state-owned insurer stated the Division of Financial Affairs has determined to grant a “one-time exemption to LIC to realize 25 per cent MPS inside 10 years from the date of itemizing i.e., until Could 2032”.
Earlier this yr, the federal government had amended the regulation in order that listed state-run corporations, together with banks, won’t must adjust to the rule requiring an MPS of 25 per cent even after their privatisation, if the federal government decides so “in public curiosity”.
The exemption to the MPS rule was earlier obtainable solely to government-controlled corporations.
The modification, notified in January—extending it to even after the sale of presidency stake—is anticipated to make it extra engaging for traders to amass state-run corporations.
In July 2021, the federal government had notified that every one listed public sector items can be exempted from MPS.
Shares of LIC closed at Rs 764.55 apiece on the BSE, up 0.52 per cent over Thursday’s shut.
