The Securities and Exchange Board of India (SEBI) on Wednesday relaxed minimum public offer norms. According to the new norms a company with post-issue market capital of above Rs.1 trillion, the IPO size is required to be Rs10,000 crore plus 5% of the incremental market capital amount beyond Rs.1 trillion.
According to SEBI, companies with Rs. 1 trillion of capital will have to attain at least 10% public shareholding in two years and at least 25% within five years from listing.
LIC is currently preparing for its public issue and being evaluated by actuarial firms will be the biggest beneficiary of the new norm.
The government is in the process to sell a part of its stake in LIC through a mega initial public offering.
