The Securities and Exchange Board of India (SEBI) has set a minimum public shareholding requirement for companies listed in India.
According to the SEBI (Listing Obligations and Disclosure Requirements) Regulations of 2015, listed companies must maintain a minimum public shareholding of 25%. Companies are expected to achieve this within a specified timeframe from their listing date.
If a company fails to meet the minimum public shareholding criteria, it must take the necessary actions to ensure compliance. Non-compliance with SEBI’s regulations may result in penalties and other regulatory consequences.
While SEBI initially provided a three-year window for listed companies to achieve the 25% minimum public shareholding, it has relaxed this rule for privatized state-run companies, granting them additional time to meet the requirement.
Specifically, five public sector banks, namely the Central Bank of India, Indian Overseas Bank, Bank of Maharashtra, UCO Bank, and Punjab & Sind Bank, have been given an extension until August 2024 to comply with the 25% MPS norm. These banks can reduce the government’s stake through methods such as follow-on public offerings or Qualified Institutional Placements.
Punjab & Sind Bank
As of the March quarter of 2024, The bank currently holds promoter holding of 98.25%,while retail investors hold a 1.09% stake in the company.
On Friday, the company’s shares closed at ₹62 per share, which is 0.32% higher than the previous closing price. The company now has a market value of ₹42,022.28 crore.
Punjab & Sind Bank shares have risen by 55.61% in the last six months and by 85.01% over the past 12 months.
Indian Overseas Bank
As of the March quarter of 2024, the bank holds a promoter holding of 96.38%, while retail investors hold a 2.29% stake in the company.
On Friday, the company’s shares closed at ₹ 66.76 per share, which is 0.15% lower than the previous closing price. The company now has a market value of ₹1,26,192.50 crore.
Indian Overseas Bank shares have risen by 62.45% in the last six months and by 170.65% over the past 12 months.
UCO Bank
As of the March quarter of 2024, the bank holds a promoter holding of 95.39%, while retail investors hold a 3.26% stake in the company.
On Friday, the company’s shares closed at ₹ 57.10 per share, which is 0.62% higher than the previous closing price. The company now has a market value of ₹68,268.52 crores.
UCO Bank shares have risen by 49.35% in the last six months and by 100.18% over the past 12 months.
Central Bank of India
As of the March quarter of 2024, the bank holds a promoter holding of 93.08%, while retail investors hold a 3.95% stake in the company.
On Friday, the company’s shares closed at ₹65.92 per share, which is 0.12% higher than the previous closing price. The company now has a market value of ₹57,224.75 crores.
Central Bank of India shares have risen by 48.14% in the last six months and by 127.07% over the past 12 months.
Bank of Maharashtra
As of the March quarter of 2024, the bank holds a promoter holding of 86.46%, while retail investors hold a 7.80% stake in the company.
On Friday, the company’s shares closed at ₹67.62 per share, which is 3.65% higher than the previous closing price. The company now has a market value of ₹47,884.25 crore.
Bank of Maharashtra shares have risen by 59.79% in the last six months and by 128.11% over the past 12 months.
Written by Omkar Chitnis
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