SEBI proposes revised minimum public shareholding norms for large IPOs

The Securities and Exchange Board of India (SEBI) at its board meeting on Friday, September 12, proposed changes to the minimum public shareholding norms for large IPOs.

For companies with a market capitalisation between ₹50,000 crore and ₹1 lakh crore, the existing requirement of achieving 25% public shareholding within three years could be extended to five years.

For companies with a market cap of between ₹1 lakh crore and ₹5 lakh crore, SEBI has proposed that a minimum public offer size should be up to ₹6,250 crore or 2.75% of the post-issue market capitalisation, whichever is higher.

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For companies with a market capitalisation exceeding ₹5 lakh crore, the minimum public offer size has been proposed at ₹15,000 crore or 1% of the post-issue market capitalisation.

If the public shareholding is less than 15% on the day of listing, the company must reach at least 15% within five years and 25% within 10 years. If public shareholding is at or above 15% on listing, the minimum 25% public shareholding requirement must be achieved within five years.

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