Overview

• The consultation draft would let very large issuers list with reduced minimum public offers and lower initial floats, then reach the 25% minimum public shareholding based on their starting public stake.
• Proposed bands set MPOs at ₹1,000 crore and 8% for ₹50,000 crore–₹1 lakh crore market caps, ₹6,250 crore and 2.75% for ₹1–5 lakh crore, and ₹15,000 crore and at least 1% for above ₹5 lakh crore, with a minimum 2.5% dilution.
• Timelines would run five years to reach 25% if public holding at listing is at least 15%, or ten years if it starts below 15% with a five-year step to 15%.
• The retail investor allocation remains at 35%, reversing a July idea to pare it for large IPOs after feedback.
• SEBI cites market-absorption and price-pressure concerns as the rationale, and it says penalties for past minimum public shareholding breaches will continue to apply.