Public float rules for IPO-bound cos amended, Pg13

Key Highlights:

• The Finance Ministry amended rules for minimum public offers.
• Companies with post-issue capital between Rs 1,600 crore and Rs 5,000 crore must increase public shareholding to 25%.
• The deadline for compliance is within 3 years from the listing date.
• The Securities Contracts (Regulation) Amendment Rules, 2026 were notified on March 13.

Detailed Insights:

• The amended rules aim to increase public participation and transparency in listed companies.
• SEBI will specify the manner in which companies must achieve the 25% public shareholding.
• These changes impact companies seeking Initial Public Offering (IPO) with substantial post-issue capitalization.
• The amendment ensures better corporate governance and prevents over-concentration of ownership.

Key Concepts Involved:

• Initial Public Offering (IPO): The process by which a private company offers shares to the public for the first time.
• Public Shareholding: The portion of a company's shares owned by public investors, excluding promoters and related parties.
• SEBI: The regulatory authority for securities markets in India.