New Delhi, March 14: The government has revised the rules regarding minimum public shareholding to facilitate Initial Public Offerings (IPOs) for large companies. Under the new regulations, these companies can now offer a smaller percentage of shares to the public during their IPOs, with plans to gradually increase it to 25% later.
This amendment determines the minimum public offering based on a company’s post-issue capital and share value.
According to the new rules, companies with post-issue capital exceeding ₹1,600 crore but not exceeding ₹4,000 crore must offer at least ₹400 crore worth of shares to the public.
For companies with capital between ₹4,000 crore and ₹50,000 crore, a minimum of 10% of shares must be offered at the time of listing, with an increase to 25% required within three years, as stipulated by SEBI.
Additionally, companies with capital ranging from ₹50,000 crore to ₹1 lakh crore must offer at least ₹1,000 crore worth of shares, ensuring that at least 8% of each class of shares is held by the public.
For companies with capital between ₹1 lakh crore and ₹5 lakh crore, a minimum of ₹6,250 crore worth of shares must be offered, maintaining at least 2.75% public shareholding at the time of listing.
Companies with capital exceeding ₹5 lakh crore are required to offer at least ₹15,000 crore worth of shares and maintain a minimum of 1% public shareholding.
The previous rule will still apply to companies with post-issue capital up to ₹1,600 crore, requiring them to offer at least 25% of shares to the public.
These changes have been made under the Securities Contracts (Regulation) Amendment Rules, 2026, issued by the Ministry of Finance under the Securities Contracts (Regulation) Act, 1956.
Under the new regulations, all companies must offer at least 2.5% equity or convertible securities to the public, regardless of their size. If public shareholding is below 15% at the time of listing, companies must increase it to at least 15% within five years and to 25% within ten years.
My name is Narendra Jijhontiya. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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