LIC jumps over 7%, hits 52-week high as govt allows time till May 2032 for minimum 25% public shareholding

LIC’s share price gained over 7% to reach a new 52-week high of ₹820.05 in morning trade on the BSE on December 22. This notable jump followed the company’s announcement of a one-time exemption granted by the government to achieve a minimum public shareholding (MPS) of 25%.

Commencing at ₹805.05, a 7.3% rise propelled LIC’s stock to its 52-week high, settling at Rs 806.50. The company’s shares have exhibited an impressive gain of nearly 12% year-to-date as of the December 21 close, outperforming the equity benchmark Sensex, which recorded a 16% increase over the same period.

Earlier it was highlighted that the Securities and Exchange Board of India (SEBI) granted large-cap companies a five-year window to meet the MPS limit. Speculation had also surfaced earlier this year, suggesting a likely extension of the 25% public float exemption for LIC beyond the initial five years.

The market regulator clarified that for issuers with a post-issue market capital exceeding ₹100,000 crore, the minimum public float requirement would be adjusted. Specifically, it would be reduced from 10% of post-issue market capital to ₹10,000 crore plus 5% of the incremental amount beyond ₹100,000 crore.

LIC made its market debut on May 17, 2022, with an original deadline to achieve the 25% MPS rule by 2027. However, the government’s decision to extend this exemption by a decade emphasizes its strategic approach to provide flexibility to India’s largest life insurer.