LIC shares rally over 6%; mcap climbs Rs 37,159 crores

New Delhi: Shares of Life Insurance Corporation (LIC) on Wednesday jumped more than 6 per cent after the firm said Sebi has granted an additional 3-year time till May 16, 2027, to comply with the 10 per cent public shareholding norm.

The stock rallied 6.31 per cent to settle at Rs 989.80 apiece on the BSE. During the day, it climbed 7.31 per cent to Rs 999.15.

On the NSE, it jumped 6.33 per cent to Rs 990 per share.

The company added Rs 37,159.36 crore taking its market capitalisation (mcap) to Rs 6,26,048.27 crore.

In volume terms, 7.77 lakh shares of the company were traded on the BSE and over 76.37 lakh shares exchanged hands on the NSE during the day.

Currently, the government holding in LIC is 96.50 per cent, while public holding is 3.50 per cent.

"Securities and Exchange Board of India vide its letter dated May 14, 2024, has conveyed its decision, to grant additional time of 3 years to Life Insurance Corporation of India to achieve 10 per cent public shareholding... i.e., within a period of 5 years from the date of listing", LIC said in a regulatory filing on Wednesday.

Accordingly, the revised timeline for the Corporation to achieve 10 per cent public shareholding is on or before May 16, 2027, LIC said.

Public sector behemoth LIC listed on the bourses on May 17, 2022. As per Sebi norms, LIC was required to achieve 10 per cent public shareholding within 2 years of listing in the capital market.

The government sold over 22.13 crore shares or a 3.5 per cent stake in LIC through an Initial Public Offering (IPO) which fetched the government Rs 20,557 crore. The price band of the issue was Rs 902-949 a share.