Mega IPO Reforms: SEBI Weighs Retail Cut and 2.5% Dilution
Why in the news
SEBI is reviewing rules for very large listings, since retail demand has been thin in giant issues.
Key facts
- Retail quota covers applications below ₹2 lakh.
- Retail interest was low in Hyundai Motor India‘s ₹27,859 crore issue.
- NSE (valued ₹6 trillion) needs a ₹30,000 crore issue under the 5% rule; 2.5% would cut this sharply.
- Anchor books may reserve slots for pension funds and insurers.
| Parameter | Today | Under review |
|---|---|---|
| Retail quota (IPO above ₹5,000 crore) | 35% | 25% |
| QIB quota | 50% | 60% |
| Public dilution (valuation above ₹1 trillion) | 5% | 2.5% |
Exam angle
- Regulator: SEBI.
- Related terms: QIB, public dilution, anchor book.