Decoded: What exactly is a public float and why is it so important?

Shares held by non-promoters are called public float or public shareholding

Any listed company has to ensure that at least 25 per cent of its shareholding is with the public at large. Shares held by non-promoters—be it retail investors, mutual funds, foreign portfolio investors (FPIs), and insurance companies—are called public float or public shareholding.Shares held by entities or individuals that incorporate the company and/or exercise control over the company are categorised as promoter shareholding. 

What is a free-float?

Typically, shares held by the public are termed free-float. However, those shares that are under lock-in or have some lien created over them or that are not easily traded in the market are