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Life Insurance coverage Company of India (LIC) knowledgeable on Thursday that the federal government has granted it a one-time exemption to realize 25 per cent Minimal Public Shareholding (MPS) inside 10 years. LIC — the nation’s largest insurer — was listed in Could 2022 the place the federal government had offered over 22.13 crore shares, or a 3.5 per cent stake within the insurance coverage behemoth, by an Preliminary Public Providing (IPO).
The federal government at present holds 96.5 per cent stake within the firm.
In a inventory alternate 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 accessible solely to government-controlled corporations.
The modification, notified in January — extending it to even after the sale of presidency stake — is predicted to make it extra enticing for buyers to accumulate state-run corporations.
In July 2021, the federal government had notified that each one listed public sector items could 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.
(With Agecny Inputs)
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