To facilitate ease of doing business for companies planning IPOs, SEBI has said any change in the size of offer for sale requiring fresh filing will be based on only one of the criteria — either issue size in rupee or number of shares. Further, promoter group entities and non-individual shareholders holding more than 5% of the post-offer equity share capital can be permitted to contribute towards.
Companies promoted by entrepreneurs often have several rounds of funding prior to listing their equity shares on the stock exchanges. In such situations, the promoters’ holding may fall short of the minimum promoter contribution i.e., 20% of the post-offer equity share capital.