IPO Rrules Changing: For big companies in India, the path to getting listed in the stock market has now become easier than before. By changing the rules related to IPO (Initial Public Offering), the government has allowed that companies whose market value after listing will be more than Rs 5 lakh crore, will have to sell only 2.5 percent of their paid-up capital to the public.
Earlier, many big companies had to face difficulty in bringing their public issues. Let us know, what changes have been made under the new rules?
These important changes happened
1. Under the new rules, companies will have to keep at least 2.5 percent of each equity share class for common investors. Along with this, the government has also set a fixed deadline to gradually increase the public shareholding, so that the participation of investors in the market can increase.
2. According to the new rules, if the public shareholding of a company is less than 15 percent at the time of listing, then it will have to increase it to 15 percent within 5 years and to 25 percent within 10 years.
At the same time, it will be mandatory for those companies whose public shareholding is more than 15 percent at the time of IPO to increase it to 25 percent within the next 5 years.
3. The government has set different rules for public shareholding based on the market capitalization of companies. Companies whose market capitalization will be between Rs 1 lakh crore and Rs 5 lakh crore will have to offer at least 2.75 percent shares to common investors during the IPO.
4. For companies whose size is smaller than this, the percentage of public share has been kept higher. For example, companies with market cap between Rs 50,000 crore and Rs 1 lakh crore will have to issue at least 8 percent shares to the public. So that participation of investors remains in the market.
5. The new rules also state that if a company has equity shares with Superior Voting Rights (SVR) and wants to list its ordinary shares in the stock exchange, then it will be necessary to list such SVR shares along with it.
The path became easier for NSE and Reliance Jio
The government has also officially implemented these new rules. Experts who have understanding of the subject believe that after this decision the chances of IPO of many big companies may increase.
Especially for companies like National Stock Exchange and Reliance Jio, the path to listing in the stock market is being considered easier.
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