SEBI's New IPO Norms at a glance

SEBI has been up in the arms to boost investor interest and revive the Indian primary markets. With the said view, it has come up with a number of reforms in the IPO market, following being the key regulations introduced:

• e-IPO facility to be available at 1,000 points initially 
• All IPO applicants must get minimum allocation of shares 
• Price band to be disclosed 5 days before IPO opens
• Minimum IPO application limit band hiked to Rs.10,000-15,000
• No need to file new DRHP if issue size changes up to 20%
• Compulsory book build issue to have 75% for QIBs
• Non-retail investors cannot cut, withdraw IPO bid, but can enhance IPO bid price, size
• Funds raised for General Corporate purpose to be capped at 25% of IPO
• Minimum profit norm for IPOs pegged at Rs.15 crore