The capital markets regulator has approved reducing the period where eligible investors in a start-up prior to the public issue have to hold 25 per cent of the pre-issue capital to one year from two years earlier.
The regulator has also allowed start-ups to allocate up to 60 per cent of the issue size on a discretionary basis, prior to issue opening, to eligible investors with a lock-in period of 30 days on such shares. Further, the open offer trigger has been raised from 25 per cent to 49 per cent in the event of a takeover of a company listed on the Innovator Growth Platform.
“However, irrespective of acquisition or holding of shares or voting rights in a target company, any change in control directly or indirectly over the target company will trigger an open offer,” Sebi said.
The regulator has also relaxed the rules around migration of a start-up listed on the Innovator Growth Platform to the Main Board of a stock exchange. Sebi said that start-ups that do not meet the conditions of profitability, net assets and net worth for migration to the main board can now do so as long as 50 per cent of the company is in the hands of qualified institutional buyers as against 75 per cent required earlier.
Delisting under the start-up framework will be considered successful if the post-offer shareholding of the acquirer, taken together with the shares tendered and accepted, reaches 75 per cent of the total issued shares of that class and at least 50 per cent shares of the public shareholders are tendered and accepted, Sebi said.