The government grants LIC a one-time exemption in order to get 25% MPS in ten years

 The government grants LIC a one-time exemption in order to get 25% MPS in ten years

The biggest insurance business in the nation, LIC, went public in May 2022. Over 22.13 crore shares, or 3.5% of LIC, have been sold by the government via the first public offering (IPO).

The state-owned insurer Life Insurance Corporation of India (LIC) announced on December 21 that it has received a one-time exemption from the government to attain a minimum public shareholding (MPS) of 25% within ten years. May 2022 saw the listing of LIC, the biggest insurance firm in the nation. Over 22.13 crore shares, or 3.5% of LIC, have been sold by the government via the first public offering (IPO).

Currently, 96.5 percent of the corporation is owned by the government. The state-owned insurer announced that the Department of Economic Affairs has chosen to provide "one-time exemption to LIC for acquiring 25 per cent MPS within 10 years from the date of listing, i.e. by May 2032" in a stock market filing.

The government changed the rules earlier this year so that listed state-run businesses, including as banks, are exempt from the need to maintain a 25 percent MPS even after privatization, if the government determines that doing so is "in the public interest". Takes. " Previously, only businesses under government control could take advantage of the MPS rule's relaxation.

Investors are anticipated to find purchases of state-run businesses more appealing as a result of the change announced in January, which extends it even after the government share sale. The government announced in July 2021 that all public sector entities on the list will not be subject to the MPS.

On the BSE, LIC's shares finished at Rs 764.55, up 0.52% from December 21.