Govt eases listing norms for companies having over Rs 1 trn m-cap

Companies that have a market capitalisation of more than Rs 1 lakh crore at the time of listing can now sell just five per cent of their shares, with the latest amendment in rules, a move that will be beneficial for the government during the proposed initial public offer of LIC. Such entities will be required to increase its public shareholding to 10 per cent in two years and raise the same to at least 25 per cent within five years. The Department of Economic Affairs under the finance ministry has amended the Securities Contracts (Regulation) Rules. Yash Ashar, Partner & Head - Capital Markets at law firm Cyril Amarchand Mangaldas, said there were some concerns that diluting 10 per cent in very large IPOs (Initial Public Offers) in the future maybe very challenging. "With this amendment, companies which at listing will have a market cap greater than one lakh crore rupees will be able to restrict their offer size to 5 per cent (as compared to 10 per cent) and this will ensure more .

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