The Securities and Exchange Board of India (Sebi) is set to introduce key reforms aimed at facilitating smoother mega initial public offerings (IPOs). Key among the proposals is a reduction in the quota reserved for individual investors - those applying for less than Rs 2,00,000 per application - from the current 35 per cent to 25 per cent for large IPOs (issue size above Rs 5,000 crore).
The promoters of large companies such as Wipro and Tata Communications will have to shell out more stake to comply with the public shareholding norms after the Sebi said capital issued outside India would not be accounted for in the calculation of "public shareholding".
In other IPOs, the minimum dilution to the public will be 25 per cent, or Rs 400 crore, whichever is lower.