IPO bound companies will have more legroom to sell shares to foreign investors: Reports

Report said that Sebi has been exploring options that could attract retail investors.

Dec 29, 2014 03:12 IST India Infoline News Service

Companies headed for an initial public offering (IPO) will have more legroom to sell shares to foreign investors, according to a report.
Report said that Sebi has been exploring options that could attract retail investors. 
With shares often trading at a discount to the issue price post listing, many small investors are driven away from IPOs.
The thinking behind 25% rule was that domestic institutions would force companies to offer shares at better valuations, report says.

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