Sebi mulls lower dilution, 5 years for achieving 25% float for large IPOs

Currently, a company with post-listing market capitalisation of Rs 4,000 crore, needs to offer at least 10 per cent stake to public shareholders

The country’s markets regulator on Friday proposed changes to the rules governing initial public offerings (IPO) to encourage issuances by large companies.  Under the new framework, big firms may be able to list with just 5 per cent dilution and get more time to achieve the 25 per cent minimum public shareholding requirements.

At present, a company with post-listing market capitalisation (m-cap) of Rs 4,000 crore needs offer at least 10 per cent stake to public shareholders, and the public shareholding needs to be increased to at least 25 per cent within three years of listing.

In a discussion paper, the Securities