Sebi approves changes to IPO norms

The other IPO which also received huge responses were Happiest Minds Technologies and Chemcon Speciality Chemicals, which was subscribed 150.98 times and 149.3 times respectively. Interestingly, both these stocks have seen bumper listing gained over 100 percent. Let's see how the IPO subscription and listing happened in 2020 so far, considered only IPOs issue size over Rs 100 crore.

The IPO price band can be announced two working days before commencement of the offer, with markets regulator Sebi today approving various amendments to the regulations. At present, the price band has to be announced five working days before the initial share sale opens for subscription.

The proposals to amend the ICDR (Issue of Capital and Disclosure Requirements) regulations were cleared by the Sebi board at its meeting here.

"The requirement of announcing price band five working days before opening of the issue would be reduced to two working days before opening of the issue," the Sebi said in a release.

With regard to public and rights issues, the financial disclosures would need to be made for three years as against the present requirement of five years.

According to the release, restated and audited financial disclosures in the offer document would be on consolidated basis only. Besides, the audited standalone financials of the issuer and material subsidiaries would need to be disclosed on the website of the issuer company.

While approving amendments to the ICDR regulations, the board considered the recommendations of the primary market advisory committee and the public comments received on a consultation paper.

"Threshold for submission of draft letter of offer to Sebi in case of rights issues to be increased to Rs 10 crore as against the earlier prescribed of Rs 50 lakh," the release said.