Of India's leading public sector undertaking, Life Insurance Corporation is one the most profitable companies owned by the government. In a recent development, LIC got a nod from the market regulatory body SEBI, an additional period of 3 years to meet the country's MPS norms.
Shares Jump 6.31 per cent
As a result of this, the company's shares jumped 6.31 per cent on the exchange market, with the price of each share closing at Rs 994.50. A minimum public shareholding, or MPS is the regulatory requirement, according to which all listed entities need to maintain a 25 per cent of the company's share public float.
In the case of newly listed companies, they are granted a three-year window. LIC was listed on May 17, 2022.
The entity released a statement through an exchange filing, wherein it said, "Pursuant to Regulation 30 of Listing Regulations, this is to inform that Securities and Exchange Board of India (“SEBI”) vide its letter dated May 14, 2024 has conveyed its decision, to grant additional time of 3 years to Life Insurance Corporation of India (“the Corporation”) to achieve 10% public shareholding under Rule 19(2)(b)(iv) of the Securities Contracts (Regulation) Rules, 1957, i.e., within a period of 5 years from the date of listing."
LIC got a nod from the market regulatory body SEBI, an additional period of 3 years to meet the country's MPS norms. | Representative Image/File
10 per cent in Three Years
The PSU is expected to have a 10 per cent shareholding in the next three years.
As far as new entities are concerned, a post-issue market capitalisation exceeding Rs 1 trillion have a period of five-year to attain the 25 per cent MPS rule. LIC has a market capitalisation of Rs 6,31,772 crore.
In all, as far as the market is concerned, the indices ended flat, while LIC had company in other PSUs along with Coal India and NTPC, Power Grid BPCL, and HAL, who ended with gains.
Meanwhile, Sensex ended the day's trade on 72,987.03, after a decline of 117.58 or 0.16 per cent. NSE's Nifty ended the day at 22,200.55, after a decline of 17.30 point or 0.08 per cent. Nifty bank also slumped to 47,687.45 after a drop of -172.00 points or 0.36 per cent.
