The most sought after IPO of Jio Platforms, the digital unit of Reliance Industries, may be postponed due to government rules.
highlights
- The most anticipated IPO of Reliance Jio Platforms may be postponed due to government rules.
- SEBI has approved the proposal to reduce the public float for big IPOs, but the final approval for it is pending.
- After the notification, Jio can launch IPO in the first half of 2026.
This IPO is considered very important not only for Reliance but for the entire Indian capital market. If everything goes as per plan, it could also become the biggest IPO in the history of the country.
SEBI had proposed to relax the rules
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Actually, the main reason for this delay is the new public float rules. Market regulator Securities and Exchange Board of India i.e. SEBI had recently approved a proposal, in which it has been said to reduce the minimum limit for selling stake in IPO for large-sized companies.
Under current rules, any company has to sell at least 5 percent stake to public investors at the time of IPO. But SEBI has suggested that companies whose valuation is more than Rs 5 lakh crore can launch IPO by selling only 2.5 percent stake. Its purpose is to limit the size of very large IPOs so that there is no sudden huge supply pressure on the market.
The new rule will be implemented only after the approval of the government.
Although SEBI has approved this change, it requires final approval from the government for it to be implemented. The proposal is currently under consideration with the Department of Economic Affairs under the Ministry of Finance. Unless the government amends the Securities Contracts Regulation Rules, 1957 and publishes it in the official gazette, this rule will not be effective. For this reason, many big companies including Reliance Jio are waiting for the government’s decision regarding the timeline of their possible IPO.
Draft prospectus may come in early 2026
According to sources, Reliance Jio is now preparing to file its draft IPO documents before April 2026, provided the government implements the new rules by then. Earlier, Mukesh Ambani had indicated that Jio could be listed in the stock market in the first half of 2026.
Jio Platforms is a key part of Reliance’s digital business and it also runs India’s largest wireless telecom operator. Investment bankers estimate that the company’s valuation could be around $170 billion. If this happens then it will be included among the largest companies of India.
Jio IPO can become a big opportunity for investors
If this IPO comes at its highest estimated valuation, then the company can raise about $ 4.3 billion even by selling only 2.5 percent stake. This can give investors a big opportunity to invest in India’s fastest growing digital companies.
It is noteworthy that in 2020, global tech companies like Meta Platforms and Alphabet together invested more than $10 billion in Jio. This greatly strengthened the company’s growth story at the international level as well.
Market waiting for big IPO
The Indian stock market has witnessed record IPO fund raising in the last two years, but the start of 2026 has been a bit slow. In such a situation, big IPOs like Jio and National Stock Exchange of India (NSE IPO) can fill new energy in the market.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.
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