According to a consultation paper released on Monday, companies with a post-issue market capitalisation between ₹50,000 crore and ₹1 lakh crore may see their minimum public offer cut from 10% to 8% of post-issue share capital.
For firms valued above ₹1 lakh crore but up to ₹5 lakh crore, SEBI has proposed a revised minimum public offer of ₹6,250 crore and at least 2.75% of post-issue share capital, compared with the current 5%. Companies exceeding ₹5 lakh crore in market capitalisation would need to offer at least ₹15,000 crore and 1% of post-issue capital, subject to a minimum dilution of 2.5%.
On timelines, SEBI has suggested extending the window for meeting the 25% MPS rule. Issuers with market capitalisation between ₹50,000 crore and ₹1 lakh crore could get five years instead of three.
Also Read: SEBI extends deadline for implementation of margin obligations process via pledge
For companies with a post-issue market capitalisation above ₹1 lakh crore, SEBI has proposed a phased framework for minimum public shareholding compliance.
Relaxations with respect to timeline to achieve MPS
If public shareholding at the time of listing is below 15%, issuers will be required to raise it to at least 15% within five years of listing, and further to the mandated 25% within ten years.
In case, public shareholding is above 15% as on the date of listing, MPS of 25% to be achieved within 5 years from date of listing
This staggered timeline, the regulator said, would give very large issuers the flexibility to comply with public float norms without putting excessive strain on market absorption.
Crucially, SEBI has retained the retail quota at 35% for IPO allocations, reversing an earlier plan to reduce it to 25% for large issuances.
The regulator said the proposals aim to promote capital formation, ease fundraising for issuers, and expand investor access to marquee listings.
Stakeholders can submit comments until 8 September 2025.
First Published: Aug 18, 2025 8:16 PM IS
