LIC Share Price Jumps 4% After Bagging 3 More Years To Meet Minimum Public Shareholding Norms

The Securities and Exchange Board of India (SEBI) has extended the deadline for Life Insurance Corporation of India (LIC) to achieve a 10 percent public shareholding by three years. LIC, the largest life insurer in the country, disclosed this on May 15. The new deadline for LIC to reach the 10 percent mark is now on or before May 16, 2027, nearly two years after its initial public offering.

Following this announcement, the LIC stock saw a rise, trading 3.3 percent higher at Rs 962.20 at 10:53 am. As of March 31, 2023, the public shareholding in LIC stood at 3.5 percent. The government still needs to divest 6.5 percent over the next three years to meet the minimum 10 percent shareholding requirement.

SEBI’s regulations stipulate that all listed companies must have at least 25 percent public float.

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LIC reported a significant achievement in premium collection for April, recording Rs 12,384 crore, the highest for that month since 2014. According to the latest figures from the Life Insurance Council, LIC’s total premium collection in April 2024 amounted to Rs 12,383.64 crore, marking a substantial increase of 113.14 percent compared to the Rs 5,810.10 crore collected in April of the previous year.

LIC attributed this success to its innovative marketing strategies and its reputation for reliability and customer-focused services. These factors expanded its reach to a broader audience, leading to increased policy uptake and premium collections, which contributed significantly to LIC’s achievement of its highest premium collection in 12 years.

In the individual premium category, LIC collected a total premium of Rs 3,175.47 crore in April 2024, marking a 25.17 percent increase from Rs 2,537.02 crore in April of the previous year. Group premium also saw significant growth, rising by 182.16 percent to Rs 9,141.34 crore in April 2024 from Rs 3,239.72 crore in April 2023.

The surge in growth was particularly driven by a 100.33 percent increase in the group yearly premium category, which reached Rs 66.83 crore in April 2024 compared to Rs 33.36 crore in April 2023, according to a report by PTI.

At 11:55 AM, LIC stock price was trading at Rs 971.30 per share on NSE, up Rs 40.30 or 4.33 percent.

Source: moneycontrol

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