SEBI May Lower IPO Public Float Requirement to 2.5% for Large Firms

SEBI is considering a proposal to allow large companies (valued over ₹1 lakh crore) to offer just 2.5% equity in IPOs, instead of the current 5%, while still raising at least ₹7,500 crore. This move aims to ease market pressure and help early investors exit. Beneficiaries could include NSE, Reliance Jio, PhonePe, and Flipkart. The plan, under review by SEBI’s primary market advisory committee, would mirror past exceptions like LIC’s 2022 IPO. The idea is to reduce dilution pressure on promoters while maintaining public holding norms, making it easier for major firms to list in alignment with market and capital needs.