Analysis and Insights into the world of IPOs and investing in India

Thursday, August 16, 2012

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
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