India’s capital market regulator has proposed a new time framework for IPO’s easing the exercise risk by cutting the minimum offer size and extending the shareholding norm for large issuers. The consultation paper includes five bands for market cap and aims to attract more mega listings
India’s capital markets regulator
In a bed ease education risk and attract more mega listings, India’s capital markets regulator has proposed a new five -slab framework for initial offering (IPO) cutting minimum public offer (MOP) size and relaxing shareholding normal deadlines for issuers above 50,000/- ( INR) core in market cap..
The security and exchange board of India (sebi) on Monday floated a consultation paper that porpose splitting the share holder into five band 4000(INR) core – 50,000(inr) core ,50,000 (inr) core – 1 trillion (inr) 1 trillion -5 trillion (inr ) and above 5 trillion. This replace the exciting boarder buckets that top out at over 1 trillion.
The consultation paper will be open for public comment till 8 sep2025
For above 50,000(inr) cor – 1 trillion band , sebi has proposed an MPO of 1,000(inr) core and and at -list of 8% post issue equity, replacing the current 10% requirment for issuers above 4000(inr) core . For 1 trillion – 5 trillion (inr) the MPO would be 6250 (inr) cor and at least 2.75 %. For issuers above 5 trillion, the MPO would be 15,000 ( inr ) core and at least diluation, with a hard at least 1 diluation, with a hard floor 2.5 % equity to be offered.