promoters contribution in FPO

as per SEBI LODR Regulation, minimum promoters contribution shall be either 20% of proposed issue capital or 20% of post issue capital. For eg, company made an IPO of 1000cr in 2010 in which the promoter held 250cr. In 2015 promoter sold shares worth 100cr since the lock in period is over.Now in 2021, company is coming up with an FPO of 500cr. Will the condition of minimum promoters contribution be fulfilled, if promoter contributes only 100cr i.e 20% of proposed issue since his total contribution i.e 250cr will be less than 20% of post issue capital

Yes, condition of minimum promoters contribution will be fulfilled, if promoter contributes only 100cr i.e 20% of proposed issue.

Answer given by Shubhamm Sir at 06-Feb-2023 05:50 PM