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Mumbai, July 11: The Bombay Stock Exchange (BSE) has revised the eligibility criteria for listing of companies on the exchange through initial public offerings and follow-on offers.

The revised guidelines, which come into effect from August 1, have classified the companies into large-cap and small-cap. A company with a minimum issue of Rs 10 crore and a market capitalisation of Rs 25 crore has been classified as a large-cap company. The remaining will fall under small-cap companies.

For large-cap companies, the minimum post-issue paid-up capital of the company should be Rs 3 crore.

The market capitalisation will be calculated by multiplying the post-issue paid-up number of equity shares with the issue price.

For small firms, while the minimum post-issue paid-up capital should also be Rs 3 crore, the minimum issue size has to be Rs 3 crore. Minimum market capitalisation for these companies is Rs 5 crore.

The small-cap companies should have a minimum income or turnover of Rs 3 crore in each of the preceding three 12-month period. Also, there has to be a minimum of 1,000 public shareholders after the issue.

A due diligence study also has to be conducted by an independent team of chartered accountants or merchant bankers appointed by the exchange. However, the requirement of a due diligence may be waived if a financial institution or a scheduled commercial bank has appraised the project in the preceding 12 months.

The company has to include a disclaimer clause in the offer document regarding the paid-up capital and market capitalisation. The clause will mention that if the requirements are not met, the stocks of the company shall not be listed on the exchange.