What percentage of holding is required to be maintained by promoters to comply with the continuous listing requirement ? How much of the promoters holding is required to be diluted to adhere to the legal provisions ?

Minimum Public Shareholding (MPS) Requirement: As per Rule 19(2) and Rule 19(A) of the Securities Contracts (Regulation) Rules, 1957, a listed company must maintain a minimum public shareholding of 25%. Promoter Holding after allotment of shares against warrants: Total promoter holding after allotment of shares against warrants stands at 77.27%. Calculation for Dilution: Total No. of shares after allotment = 1,10,00,000 Public holding required (25% of total shares) = 25% of 1,10,00,000 = 27,50,000 shares Promoter holding should not exceed (100% - 25%) = 75% of 1,10,00,000 = 82,50,000 shares Current Promoter holding = 85,00,000 shares Shares to be diluted by promoters = 85,00,000 - 82,50,000 = 2,50,000 shares Hence, promoters must dilute 2,50,000 shares to the public, which is 2.94% of their current holding (2,50,000 / 85,00,000 * 100), to comply with the minimum public shareholding norms. Alternatively, the company can issue additional equity shares to the public to increase the public float. If the company issues 3,33,334 equity shares to the public, the total share capital will increase to 1,13,33,334 shares (1,10,00,000 + 3,33,334). In this scenario, the public will hold 28,33,334 shares (25,00,000 existing public shares + 3,33,334 new shares), which would be approximately 25% of the increased total share capital (28,33,334 / 1,13,33,334 * 100 ≈ 25%).