How will revised IPO rules affect the market?

News Today (04.01.2022)

According to the new SEBI rules, the price band of an IPO should be set in such a way that the ceiling price is at least 105% of the floor price.Secondly, companies will not be allowed to use more than 35% of the money that they collect through IPOs to fund the purchase of other businesses, unless they offer sufficient details.Thirdly, promoters with a stake of over 20% in a company cannot sell more than half of their stake in an IPO.And lastly, anchor investors will not be able to sell more than half their shares before 90 days from the date of the IPO, against the current time stipulation of 30 days. (Read More)

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