Sebi proposes to illuminate IPO standards for large companies

Mumbai: The Securities and Exchange Board of India (SEBI) proposes to relieve standards for large companies that want to sell shares through an initial public offer (IPO). The supervisor has recommended to reduce the minimum part of the shares (MPs) that such companies must offer the public in the issue.

The proposal would enable entities such as the National Stock Exchange (NSE) and Reliance Jio InfoComm, which orders multi-billion dollar valuations, to become public with a smaller Float.

“For such large issues, diluting a substantial bet via an IPO can be challenges, because the market may not be able to absorb such a large stock of shares, which in turn can discourage such emptents from pursuing lists in India,” Sebi said in a discussion document on Monday.

The supervisor said that for companies with a post IPO market capitalization above £ 50,000 crore, the minimum stock sales should be at least 8% compared to the current 10%. For companies, with a post -problem of the market capitalization of more than £ 1 Lakh Crore and £ 5 Lakh Crore, they should dilute at least 2.75% and 2.5% respectively. Now companies with a market capitalization had to dilute at least 5% of equity after the edition above £ 1 Lakh Crore.

He had stated in his edition of 1 August 2025 that Sebi is considering a proposal to allow large companies with valuations of more than £ 1 Lakh Crore to dilute only 2.5% of their stock of stock.

Minimum public shareholding
The supervisor has also proposed relaxations in the timeline to meet the minimum public retention standards.

For EMPENTEN with a post -issue market capitalization more than £ 50,000 crore, the timeline for compliance with the minimum public shareholder requirement of 25% would be extended to five years from the existing three years from the date of the list. Between the list of the list of an appointment with a minimum of 15% in the course of the minimum of 15% within 10%. Years from the date of mention.

“Requiring substantial equity dilution for complying with the MPS requirements, immediately after the IPO can lead to an oversupply of shares in the market. This expectation of further dilution can influence stock prices, despite strong fundamentals of the company, and may have a negative influence on existing public shareholders,” said it.

The supervisor said it would make recommendations to the Ministry of Finance to change the rule for securities contracts (Regulation) to offer flexibility to large emennials.

Sebi said: this would enable great issuers to undertake fundraising in a phased way and facilitate issuers to plan and implement fundraising activities.

The minimum rules for public shareholders were introduced in 2021. According to these provisions, emennials with a post -preaching market hood are more than £ 1 Lakh Crore to dilute at least 5% at the time of the IPO and have the task to increase their public shareholding within 2 years to 10% and further to 25% within 5 years of the list.

“For very large market capital companies … This will reduce the requirements to look for ad hoc or once Sebi relaxation. This step will further illuminate the pressure on secondary capital markets, where only issues with real capital requirements will use a fund increase,” said Arka Mookerjee, partner, JSA -Advocates & Solicitors.