LIC’s share price gained over 7% to reach a new 52-week high of ₹820.05 in morning trade on the BSE on December 22. This notable jump followed the company’s announcement of a one-time exemption granted by the government to achieve a minimum public shareholding (MPS) of 25%.
Commencing at ₹805.05, a 7.3% rise propelled LIC’s stock to its 52-week high, settling at Rs 806.50. The company’s shares have exhibited an impressive gain of nearly 12% year-to-date as of the December 21 close, outperforming the equity benchmark Sensex, which recorded a 16% increase over the same period.
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Life Insurance Corporation (LIC) of India can now pursue a 25% MPS by May 2032, benefiting from the government’s one-time exemption. The Department of Economic Affairs, citing ‘public interest,’ granted this unique extension, allowing LIC to achieve the stipulated MPS within 10 years from its listing date, i.e., until May 2032.
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Earlier it was highlighted that the Securities and Exchange Board of India (SEBI) granted large-cap companies a five-year window to meet the MPS limit. Speculation had also surfaced earlier this year, suggesting a likely extension of the 25% public float exemption for LIC beyond the initial five years.
The market regulator clarified that for issuers with a post-issue market capital exceeding ₹100,000 crore, the minimum public float requirement would be adjusted. Specifically, it would be reduced from 10% of post-issue market capital to ₹10,000 crore plus 5% of the incremental amount beyond ₹100,000 crore.
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LIC made its market debut on May 17, 2022, with an original deadline to achieve the 25% MPS rule by 2027. However, the government’s decision to extend this exemption by a decade emphasizes its strategic approach to provide flexibility to India’s largest life insurer.
