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Equity dilution norms for large IPOs on anvil

Cos with post-issue capital of above Rs 10Kcr required to offer at least 5% stake in IPO

Equity dilution norms for large IPOs on anvil
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Equity dilution norms for large IPOs on anvil

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New Delhi: Markets regulator Sebi on Friday proposed to reduce the minimum offer size in an initial share-sale, whereby companies with a post-issue capital of above Rs 10,000 crore would be required to offer at least 5 per cent stake in IPO.

At present, all companies with a post-issue capital above Rs 4,000 crore are compulsorily required to dilute at least 10 per cent shareholding in initial public offering (IPO).

In view of the proposal, Sebi said there could be a scenario where large issuers may not be compliant with 10 per cent minimum public shareholding (MPS) at the time of listing.

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