Through the Innovators Growth Platform (IGP), market regulator SEBI is trying to launch a platform like Nasdaq in India. The American stock exchange Nasdaq helped a lot of tech startup companies like Google, Facebook, Apple, Amazon and Netflix, and today these companies have become quite large. SEBI wants startup companies in India to be helped in a similar way through the Innovators Growth Platform.
India’s early tech startup companies such as Make My Trip and Yatra are listed on Nasdaq. Nasdaq Tech has proved to be very helpful in listing startup companies, which has made it easier for these companies to raise funds from the market.
Still companies like ReNew Power and Grophers have moved into the US market through a Special Purpose Acquisition Company (SPAC).
Many startup companies in India are set to launch IPOs. These include Zomato, Deliveri and Nayaka. SEBI has made the innovators growth platform easier like Nasdaq. SEBI wants to promote listings of startup companies in India.
What has changed in the Innovators Growth Platform?
The pre-issue holding period was reduced from the current 2 years to 1 year. The move will facilitate startup companies to allocate qualified investors. So far, this facility was only with companies listed in BSE and NSE.
According to Sebi’s new rules, the company that issues the IPO can allocate up to 60 per cent of the issue size to eligible investors. Its lock-in period will be 30 days. Till now, such allocation was not allowed to startup companies.
The investor’s pre-issue shareholding has been reduced to 25% of the pre-issue capital. It was earlier only 10 per cent.
SEBI said that if more than 50% of the start-ups that are not profitable are with qualified institutional buyers, then they can join the main board of the stock exchange. Earlier this limit was 75 percent. But now it has been reduced.
The takeover of the listed company on the Innovator Growth Platform will require an open offer for 49 per cent instead of the current 25 per cent.
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