Abstract
There are 22 MNC companies listed in India, whose public shareholding is less than 25%.After the finance ministry's guidelines regarding the minimum public shareholding of 25%, these companies will come under limelight, to see what would be their approach to comply with these guidelines.They have the option of off-loading the promoters' holding to bring down to 75%. They can do it either through FPOs/QIP/ADR/GDR/stake sale in the open market (or) combination of these. Else, if they don’t wish to offload the promoters holding, they may choose to delist their companies from the Indian stock exchanges.Considering the nature of the MNCs, their foreign parent companies may not be that willing to offload their stakes. Probably, they may choose the route of delisting.Probably, after the guidelines regarding the minimum public shareholding, the Indian capital markets may need to get ready to bid farewell to some of these prestigous global companies through delistings.
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