Easing IPO Rules Could Unlock Reliance Jio Listing: Citi Sees Big Opportunity

SEBI Proposes Major IPO Norm Relaxations

India’s capital markets may soon see a big change. The Securities and Exchange Board of India (SEBI) has proposed easing of IPO rules for very large firms. Under the new plan, companies with a market value of more than ₹5 trillion (~$57 billion) after listing could cut their required public share from 5% to only 2.5%.

Further, SEBI also plans to extend the timeline for meeting the minimum 25% public shareholding requirement—granting up to five years for firms valued between ₹500 billion and ₹1 trillion, and up to ten years for those exceeding ₹1 trillion after listing.

These steps aim to address absorption challenges and lower regulatory hurdles — enabling marquee companies to launch IPOs without flooding the market.

Citi Identifies Reliance Jio as Primary Beneficiary

According to Citi, these changes significantly improve the prospects of a Reliance Jio IPO. At current valuation, a mandatory 5% float would equate to a supply exceeding $6 billion—considered too large for the Indian market to absorb effectively.

However, lowering the float to 2.5% would cut the IPO size to around $3 billion, easing supply pressure and potential holding company discounts, thereby making a listing more feasible.

A Trigger for Long-Awaited Listings

Reliance Jio has long been anticipated as one of the most transformative IPOs in Indian market history. Reports estimate it could raise over ₹52,000 crore (~$6.3 billion), potentially becoming the largest ever IPO in the country.

While regulatory roadblocks have delayed the listing, SEBI’s proposed easing may now clear the path for a much-awaited public float. Citi’s analysis underscores how reduced minimum float and extended compliance timelines directly support such mega offerings.

Broader Market Impacts Anticipated

The rule changes don’t just benefit Jio. They extend to other large issuers like the National Stock Exchange (NSE) — potentially unlocking pipelines for multiple mega-IPO launches.

Should SEBI finalize the rules, analysts predict a fresh wave of listings, boosting investor participation, increasing liquidity, and deepening India’s capital markets.

Implementation and Industry Reception

SEBI has invited public comments on these proposals until early September. If adopted, large-cap companies can plan more strategically around IPO structure without risking over-supply in public markets.

Legal experts have welcomed the change, noting it enables major players to balance capital raising with market stability more effectively.

Final Thoughts

The easing of IPO rules signals a bold reform aimed at unlocking India’s mega-cap firms, particularly Reliance Jio, for public fundraising. By reducing the required public float and extending compliance timelines, SEBI may finally enable blockbuster listings without overwhelming markets.

If regulations are implemented swiftly, investors and companies alike may soon witness a wave of transformative IPOs — a watershed moment for India’s equity ecosystem.

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