What is maximum shareholding promoter can keep in an Indian company? Here in ICICI Pru, promoter is holding more than 80%.
74% seems to be the upper limit. Here is a screen I created for this.
If you change 74 to 75, there are no results and as your reduce, the results increase. Strange why ICICI Pru doesn’t show up.
This is governed by SEBI (Issue of Capital and Disclosure Requirements) ICDR Regulations 2009 [last amended on March 6, 2017.
For ease of understanding, I am posting a gist from an article published by Livemint which suggests it is currently b/w 75-90% subject to certain conditions as below:
“Companies with a post-issue capital of less than Rs.4,000 crore will have to sell a 25% stake or stocks worth Rs.400 crore, whichever is lower, to the public in an initial share sale, while a company with a post-issue capital of more than Rs.4,000 crore is allowed to offload a minimum of 10% in the IPO. However, if an IPO of Rs.400 crore size is not equivalent to 25% of its post-issue capital, the minimum public shareholding of 25% has to be achieved within three years of listing.”
Hope this helps.
According to the above balance sheet the post-issue capital of ICICI pru is 1435cr therefore they will have to offload remaining 5% in three years from listing.
Have a basic question on Shareholding pattern:
When we check the shareholding pattern, we often see a line like the one given below:
Individual share capital in excess of Rs. 2 Lacs as XYZ number of shareholders.
Does the figure quoted here represent the face value total as 2/5/10… lakhs or the total market value of someone’s holding as 2/5… lakhs.