Mega IPOs may see lower share dilution

The Securities and Exchange Board of India (Sebi) on Monday proposed lowering the minimum dilution requirement for mega initial public offerings (IPOs), a move expected to benefit large listings such as Reliance Jio Infocomm and the National Stock Exchange (NSE). Under the proposed norms, companies with a market capitalisation exceeding ₹5 trillion would be allowed to significantly reduce their minimum public offer (MPO). For instance, under the current framework, a company with a market valuation of ₹15 trillion must come out with an MPO worth ₹80,000 crore. This has been proposed to be reduced to ₹ 37,500 crore. Read Article