Easier dilution norms for large IPOs where post-listing m-cap tops Rs 1 trn

Move seen as precursor to LIC IPO; 5% minimum public shareholding compulsory on IBC relisting

Easier dilution norms for mega initial public offerings (IPOs) have come into effect. Companies with post-listing market capitalisation (m-cap) of more than Rs 1 trillion will not be required to dilute a minimum of 10 per cent. The move to relax dilution norms is seen as a precursor to Life Insurance Corporation’s IPO.
 
The central government has said companies with an m-cap exceeding Rs 1 trillion will have to dilute Rs 5,000 crore and at least 5 per cent of their m-cap.
 
Experts said the earlier framework discouraged large companies from listing since they were forced to offload