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June 14, 2026
The Dispatch

Definition

Promoter Group

The promoter group comprises the promoters and the persons and entities related to or acting in concert with them.

Under SEBI rules, the promoter group includes the promoters' relatives, and companies in which the promoters or their relatives hold significant stakes. Identifying the promoter group matters for disclosures, lock-in, related-party transactions and takeover thresholds.

The offer document must disclose the full promoter group and its shareholding. Aggregating their holdings is essential for applying minimum-contribution, lock-in and creeping-acquisition rules accurately.

Related terms

  • Minimum Promoter ContributionMinimum promoter contribution is the share of post-IPO capital that promoters must hold and lock in, normally 20%.
  • Related-Party TransactionsRelated-party transactions (RPTs) are deals between a company and parties connected to it, such as promoters, directors or group entities.
  • Open Offer (Takeover)An open offer is a mandatory offer to buy shares from public shareholders when an acquirer crosses certain ownership thresholds in a listed company.

Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.