Archive · 20 Aug 2025
SEBI Proposes IPO Rule Changes for Large Companies
SEBI, India's market regulator, wants to make it easier for very big companies to sell their shares to the public.
They're changing the rules so these companies don't have to sell as many shares at once, which can be tough.
Imagine a company worth a lot of money.
The new rules would let them sell a smaller amount of shares initially.
Also, companies will get more time to let the public own at least 25% of their shares.
This should help more large companies become publicly traded.
SEBI proposes changes to IPO rules, reducing immediate dilution for large companies.
The new framework lowers minimum public offer (MPO) thresholds for mega-cap firms.
Companies with market caps between Rs 50,000cr and Rs 1 lakh crore must float at least Rs 1,000 crore.
Firms above Rs 5 lakh crore market cap need to raise a minimum of Rs 15,000 crore.
Retail investor allocation in IPOs over Rs 5,000 crore is reduced to 25%.
- Who
- The Securities and Exchange Board of India (SEBI).
- What
- SEBI is proposing new rules for Initial Public Offerings (IPOs) to make it easier for large companies to go public.
- When
- The proposed framework is open for public comments.
- Where
- India
- Why
- To make IPOs for mega-cap firms more practical and less burdensome.
- Proposed Changes
- Lower MPO thresholds and extended timelines for MPS compliance.
- Companies Affected
- Mega-cap firms
- MPO for Rs 50,000cr - Rs 1 lakh cr firms
- At least Rs 1,000 crore (8% stake)
- MPO for > Rs 5 lakh crore firms
- Rs 15,000 crore (minimum 1% stake or 2.5% of post-issue equity, whichever is higher)
- MPS Compliance Timeline
- Up to 10 years, depending on current public shareholding at listing
- Retail Investor Allocation
- Reduced to 25% for IPOs over Rs 5,000 crore