India Reduces Minimum Public Share Float, Paving Way for NSE, Jio Listings

Indian Government Relaxes IPO Rules for Large Companies

The Indian government has formally notified a change to the minimum share sale requirement for large companies listing on the stock exchange, paving the way for initial public offerings by prominent companies such as National Stock Exchange and Reliance Jio.

As proposed last year, the minimum share sale requirement has been halved to 2.5% of paid-up capital for companies valued at above Rs 5 lakh crore (approximately $57 billion) after listing. This change is part of a broader set of rules released by the government, effective immediately.

Key details of the changes include:

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• 2.5% minimum public float for companies with a market capitalization above Rs 5 lakh crore
• A mandatory glide path to reach 25% public shareholding, with different timelines for companies with varying public shareholdings
• 5-10 year timeline for companies to reach 25% public shareholding, depending on their initial public shareholding
• 2.75-8% minimum public float for companies with market capitalization between Rs 1 trillion and Rs 5 trillion, or Rs 500 billion and Rs 1 trillion, respectively
• Mandatory listing of shares with superior voting rights for companies listing ordinary shares