SEBI provides relief to public listings of large companies

The SEBI in its board meeting approved the amendment to Securities Contracts (Regulation) Rules, 1957 relating to Minimum Public Offer and timelines to comply with Minimum Public Shareholding for issuers with the objective to enhance ease of doing business.

Large firms will now face a more practical path to listing. For companies above Rs 50,000 crore market cap, the minimum public offer is set at Rs 1,000 crore plus 8%. Those between Rs 1-5 lakh crore must issue at least Rs 6,250 crore plus 2.75%, while those above Rs 5 lakh crore must issue Rs 15,000 crore plus 1%, with a floor of 2.5%. Timelines to reach the mandated 25% public float have been relaxed to 10 years, easing the pressure on mega listings.

Moreover, anchor investor allocation has been raised to 40% of the IPO size (up from one-third). Within this, insurance and pension funds will get 7%, while mutual funds retain 33%. The number of anchor allottees will scale with IPO size, rising from 5 to 15 per Rs 250 crore block, broadening participation.

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