SEBI Relaxes Minimum Public Offer Norms for Large IPO

SEBI Relaxes Minimum Public Offer Norms for Large IPO

Securities and Exchange Board of India (SEBI) held a meeting of its board members on 17th February, 2020. It has cleared deck for large IPO and relaxes minimum public offer norms.

Accordingly, for issuers with post-issue market capital exceeding Rs 1 lakh crore, the need for minimum public offer will be reduced from 10% of post-issue market capital to Rs 10,000 crore, plus 5% of the incremental amount beyond Rs 1 lakh crore.

Issuers would be required to achieve at least 10% public shareholding in two years and 25% within five years from the date of listing.

However, at present, issuers with post-issue market capital of at least Rs 4,000 crore are required to offer to the public at least 10% of their post-issue stock. Besides, such issuers are also required to achieve a minimum public shareholding (MPS) of 25% within three years from the date of listing.

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