Sebi eases listing rules for large IPOs, paving way for LIC's mega float

Lowers minimum dilution, extends deadline to increase float for big companies

The Securities and Exchange Board of India (Sebi) on Wednesday eased the listing norms for large companies, apparently paving the way for the much-awaited mega float of Life Insurance Corporation (LIC).

The regulator said large companies can now divest a minimum 5 per cent in the IPO, instead of 10 per cent. Further, they will get five years, instead of three, to raise the public float to 25 per cent.

Experts said the move would encourage large firms to opt for listing.

“For issuers with post-issue market capital exceeding Rs 1 trillion, the requirement of the minimum public float will be reduced from