Govt Eases Public Shareholding Norms for Mega IPOs: New Graded Framework Notified

• Central government amended minimum public shareholding (MPS) rules for mega companies planning IPOs.
• Introduces a graded framework based on post-issue capital, allowing large firms to offer smaller public portions initially.
• Aims to facilitate large companies going public while ensuring eventual 25% public shareholding.
• New rules include varying MPS requirements and timelines (3-10 years) to reach 25% for different company sizes.
• Applies to companies listed before amendment; stock exchanges can fine for past non-compliance.