News Broadcasting
SEBI GIVES GREEN SIGNAL TO MEDIA AND ENTERTAINMENT COMPANIES: EASES IPO NORMS
The Securuties and Exchange Board of India (Sebi) has finally given the much awaited green signal to media, entertainment and telecom companies who had been demanding since a long time the 10 per cent Initial Public Offering (IPO) norm which was earlier enjoyed only by Infotech companies.
The board meeting held by Sebi decided on allowing knowledge based companies in the media, entertainment and telecom sector to offer a minimum 10 per cent shares to the public through IPOs. Earlier to this, the norm was a minimum 25 per cent IPO.
One condition, however, is added which says that minimum 2 million shares should be issued and the size of the public offering should be atleast Rs 500 million. This norm is to ensure enough floating stock in the market. Also 75 per cent revenues and profit of such companies should come from one of media, entertainment or telecom businessess.
