Life Insurance Corporation of India (LIC) shares hit a 19-month high of Rs 820.05 as they rallied 7 per cent on the BSE in Friday’s intraday trade supported by heavy volumes, after the Finance Ministry gave the company a one-time exemption from the 25 per cent public shareholding rule.
LIC share price opened at Rs 805.05 against the previous close of Rs 764.55 and soon jumped 7.3 per cent to hit its 52-week high. Around 9:50 am, the stock was 5.49 per cent up at Rs 806.50.
A combined 4.25 million equity shares of the company have already changed hands in the first 20 minutes of trading on the NSE and BSE, exchange data shows. The stock of the state-owned life insurer was quoting at its highest level since May 31, 2022.
LIC share price opened at Rs 805.05 against the previous close of Rs 764.55 and soon jumped 7.3 per cent to hit its 52-week high.
LIC share price has gained nearly 12 per cent this year so far (as of December 21 close) while the equity benchmark Sensex has gained over 16 per cent in the same period.
Life Insurance Corporation (LIC) of India can now achieve a minimum public shareholding (MPS) of 25 per cent by May 2032 as the government has granted a one-time exemption to the life insurance major in this regard.
LIC said in a regulatory filing to the stock exchanges on Thursday, December 21 that the Department of Economic Affairs has decided ‘in the public interest’, to grant a one-time exemption to achieve 25 per cent MPS within 10 years from the date of listing i.e., till May 2032.
LIC, which debuted on the bourses on May 17, 2022, was originally required to meet the 25 per cent MPS rule by 2027. However, the government has granted an extension of 10 years to India’s largest life insurer for the same.
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