The Finance Ministry’s Department of Economic Affairs (DEA) on Friday notified changes to India’s IPO rules with regards to the minimum offer and allotment to the public in an offer document.
The notification dated 13 March, provides a tiered structure for companies and corporations planning to list on the stock exchanges. It amends the Securities Contracts (Regulation) Rules, 1957 to reduce minimum mandated public shareholding of a listed stock from 5% to 2.5%.
The changes were approved by the Securities and Exchange Board of India (Sebi) in September last year before being sent to the government for consideration.
IPO rules amended: Key highlights
The minimum offer and allotment to the public in terms of an offer document shall be:
- At least 2.5% of each share or debenture shall be offered to the public, subject to achieving timelines.
What is the impact? Who will benefit?
According to reports, the amendment clears the way for Reliance-owned Jio Platform and the National Stock Exchange’s initial public offerings (IPO). Notably, this is the first listing of a major Reliance unit in almost 20 years and could be India’s biggest ever.
Earlier this month, sources told Bloomberg the Mukesh Ambani-led conglomerate is awaiting formal greenlight from the Centre to file draft IPO prospectus. The aim is to file by April this year, the sources added. It also noted that the amendment comes as India’s IPO market is facing a weak phase following a bumper 2025 and could help revitalise the space.
