The government has granted a one-time exemption to Life Insurance Corporation of India (LIC) to achieve 25 per cent minimum public shareholding (MPS) within 10 years, the state-owned insurer said on Thursday.
The country's largest insurer LIC was listed in May 2022. The government had sold over 22.13 crore shares, or a 3.5 per cent stake in LIC, through an Initial Public Offering (IPO).
The government currently holds 96.5 per cent stake in the company.
In a stock exchange filing, the state-owned insurer said the Department of Economic Affairs has decided to grant a "one-time exemption to LIC to achieve 25 per cent MPS within 10 years from the date of listing i.e., till May 2032".
Earlier this year, the government had amended the regulation so that listed state-run companies, including banks, will not need to comply with the rule requiring an MPS of 25 per cent even after their privatisation, if the government decides so "in public interest".
The exemption to the MPS rule was earlier available only to government-controlled companies.
The amendment, notified in January—extending it to even after the sale of government stake—is expected to make it more attractive for investors to acquire state-run companies.
In July 2021, the government had notified that all listed public sector units would be exempted from MPS.
Shares of LIC closed at Rs 764.55 apiece on the BSE, up 0.52 per cent over Thursday's close.
