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Recent IPO-listed stocks gain as SEBI tightens rules

The Securities and Exchange Board of India (SEBI), on December 28, cleared the rules for tightening initial public offerings (IPOs) near the end of a year in which companies raised a record Rs.1.2 lakh crore in first-time share sales.

December 29, 2021 / 02:22 PM IST

After a healthy correction, shares of the recently-listed initial public offering (IPO) surged on December 29 on the back of higher volumes after the Securities and Exchange Board of India (SEBI) had tightened rules for share sales.

Latent View Analytics rose 10 percent, Data Patterns India 9.2 percent, SJS Enterprises 9.2 percent, Krsnaa Diagnostics 8.2 percent, Windlas Biotech 8 percent, CE Info Systems 8 percent, Ami Organics 8 percent, Medplus Health Services 7.3 percent, Cartrade Tech 7 percent, KIMS 5 percent, Tega Industries 5 percent, Tarsons Products 5 percent, Anand Rathi Wealth 3 percent and RateGain Travel Tech 4 percent.

The SEBI, on December 28, cleared the rules for tightening initial public offerings (IPOs) near the end of a year in which companies raised a record Rs.1.2 lakh crore in first-time share sales.

These rules will address gaps like conditions for the objective of IPOs, utilization of proceeds from the share sales, price bands, anchor investors’ lock-in period and the size of the stake a majority shareholder may sell on listing day.

At present, shareholders can sell their entire shareholding through an offer for sale, but the market regulator has now mandated that shareholders who hold 20 percent or more cannot exit more than 50 percent of their stake on listing day.

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In order to stabilise share prices of newly listed firms and prevent potentially huge losses for retail and high net-worth investors, SEBI increased the lock-in period to 90 days from 30 days.
Moneycontrol Research
first published: Dec 29, 2021 01:46 pm
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