In SEBI’s latest board meeting, SEBI has diluted the IPO rules for listing, as we had mentioned in our earlier post (SEBI For IPO Reform, Might Remove Barriers to Lower IPO Dilution).
Minimum dilution to public in an IPO shall be 25% or Rs. 400 crore, whichever is lower, for companies with post capitalisation of less than Rs. 4000 crore. This will remove the anomaly that a company just short of Rs. 4000 crore market capitalisation, was required to dilute about Rs. 1000 crore while another company at Rs. 4000 crore market capitalisation was required to dilute only Rs. 400 crore.
Which resolves the distinction of the earlier rule that said:
Excellently done. This would have really helped companies like JustDial where the investors didn’t want to dilute that much, but the post market cap was just short of 4,000 cr.