The proposal, aims to make it easier for large companies, particularly those with a post-issue market capitalization exceeding Rs 50,000 crore to list in India. The current regulations, which require substantial equity dilution, can be a deterrent for large issuers as the market may find it challenging to absorb such large public issues. It proposes to introduce new MPO thresholds and extend the timeline for achieving MPS compliance. For issuers with a market cap between Rs 50,000 crore and Rs 1 lakh crore, the MPO would be ₹1,000 crore and at least 8% of the post-issue share capital, with the MPS timeline extended to 5 years. For companies with a market cap above ₹1 lakh crore, the MPO and MPS timelines would be further relaxed. The consultation paper also proposes to retain the 35% retail quota in IPO allocations. The comments/ feedback from stakeholders are invited.
