FinMin tweaks public float rules for IPO-bound firms

New Delhi: The Finance Ministry has amended rules governing the minimum public shareholding requirement for companies seeking to list on stock exchanges, linking the public offer size to post-issue capital. Under the Securities Contracts (Regulation) Amendment Rules, 2026, notified on March 13, companies with post-issue capital of more than Rs1,600 crore and up to Rs5,000 crore must raise their public shareholding to at least 25 per cent within three years of listing, as specified by the Securities and Exchange Board of India. The rules mandate that at least 2.5 per cent of each class of securities must be offered to the public at the time of listing, irrespective of the post-issue capital threshold.

Companies with post-issue capital of up to Rs1,600 crore must offer at least 25 per cent of each class of equity shares or debentures convertible into equity shares to the public. Firms with post-issue capital between Rs1,600 crore and Rs4,000 crore must offer shares worth Rs4,000 crore. For companies with post-issue capital above Rs4,000 crore but up toRs5,000 crore, the minimum public offer will be at least 10 crore shares of each class of equity shares or convertible debentures issued.