Lower Public Float: A Boon for Companies; Threat to Investors

There is always a good reason to do the wrong thing. On 12 September 2025, the Securities and Exchange Board of India (SEBI), at its board meeting, approved significant changes to the minimum public shareholding (MPS) norms for large companies. The current requirement is that companies dilute at least 10% of equity within three years of listing. Under the new proposal, companies valued between Rs50,000 crore and Rs1 lakh crore will be allowed to list with just 8% public float (minimum float of Rs1,000 crore) and meet the 25% MPS norm in five years. For mega firms valued between Rs1 lakh crore and Rs5 lakh crore, the float requirement has been cut to 2.75% or Rs6,250 crore, with as much as 10 years to reach the 25% benchmark. ( Read: Big Boost for NSE, Jio IPO Plans as SEBI Recommen