📈 LIC Share Price Update: 18 May 2024 📉
India’s largest insurance company, Life Insurance Corporation of India (LIC), has received a major update. The Securities and Exchange Board of India (SEBI) has granted LIC an extension of three years to comply with the minimum shareholding pattern rules. In simple terms, after being listed on the stock exchange, the Indian government is obligated to bring its stake in the company up to 75% within a specified period.
As of Friday, May 17, 2024, LIC’s share was trading at ₹971.35, a decrease of 0.22%. On Saturday, May 18, the share had increased by 0.32% to ₹974.
The Ministry of Finance had given LIC a 10-year period to comply with the minimum 25% public shareholding rule. This period will remain in effect until May 2032. Following this news, there was a surge in LIC’s shares. On Tuesday, the company’s shares closed at ₹931, opened at ₹934 on Wednesday, and reached ₹971 on Thursday.
The Indian government had sold 22.13 crore shares or a 3.5% stake in LIC through an IPO in the open market. The government currently holds a 96.50% stake in LIC. According to SEBI regulations, after listing, the government’s stake in a state-owned company must be at least 25% of the total share capital. Additionally, after a specified period, the government’s share in a state-owned company cannot exceed 75%.
In the coming days, the Indian government will need to comply with these regulations to maintain its stake in LIC.
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