To facilitate ease of doing business for companies planning IPOs, Sebi has said any change in the size of offer for sale (OFS) requiring fresh filing will be based on only one of the criteria — either issue size in rupee or number of shares.
Further, promoter group entities and non-individual shareholders holding more than 5 per cent of the post-offer equity share capital can be permitted to contribute towards the shortfall in minimum promoters’ contribution (MPC) without being identified as a promoter, according to a notification issued by Sebi.
Companies promoted by entrepreneurs often have several rounds of funding prior to listing their equity shares on the stock exchanges. In such situations, the promoters’ holding may fall short of the minimum promoter contribution i.e., 20 per cent of the post-offer equity share capital.
While the current ICDR (Issue of Capital and Disclosure Requirements) rule permits certain categories of investors to contribute equity shares held by them
| Subscribe To Our Free Newsletter |
