Sebi's timely move

Lower public shareholding norms should help large IPOs

The Securities and Exchange Board of India (Sebi) released a consultation paper on Friday, indicating that it was considering a reduction in the minimum stake offered in an initial public offer (IPO) with regard to larger companies. It will also extend the timeframe for meeting the minimum public shareholding (MPS) requirements for larger companies. Currently, any IPO of a company with a market cap of less than Rs 1,600 crore must offer a 25 per cent stake, while those with a market cap of Rs 1,600-4,000 crore must sell stake of at least Rs 400 crore (all calculated in terms