- Finance Ministry lowers minimum IPO equity dilution to 2.5% for firms over Rs 5 lakh crore
- Change aids Reliance Jio's planned IPO, India's largest telecom firm with 50 crore users
- Jio IPO draft expected before April, aiming for a 2026 listing, subject to SEBI approval
The Finance Ministry on Friday relaxed initial public offering rules allowing companies with a post-issue market value exceeding Rs 5 lakh crore to dilute a minimum of 2.5% equity, down from the previous 5% limit.
The development comes amid Reliance Industries Ltd.-owned Jio Platform IPO plans, the conglomerate's first major listing in almost 20 years and likely to be India's biggest ever. Bloomberg News earlier reported that the Mukesh Ambani-led telecom major was awaiting for a formal rule change from the government to file a draft IPO prospectus. The latest amendment also comes at a time when India's IPO market is facing a weak phase following a good performance in 2025.
Reliance Jio is India's largest telecom company, with over 50 crore users. The company began offering cheap data and free call plans to users in 2016, triggering a price war that folded up a few rivals.
The company reported a 13% year-on-year increase in gross revenue at Rs 43,683 crore for the third quarter of the current financial year. The Akash Ambani-led firm's profit after tax grew 11.2%to Rs 7,629 crore.
Here's what we know about Jio IPO:
When to expect Jio IPO?
The draft papers for the proposed Jio IPO are expected to be filed before April, on the basis of the government notification, as per multiple reports. In August, Ambani said that Reliance was aiming to list the unit in the first half of 2026, a plan he had first hinted at in 2019, with a five-year timeline.
Once Jio submits its draft IPO papers for approval, it will be for market regulator SEBI to review the document. When the regulatory nod comes, the company will announce the IPO dates along with offer details.
How much does Jio plan to raise?
A top-end valuation of the proposed IPO may raise nearly $4.3 billion by selling the minimum stake and would place the company among the biggest companies in India by market value.
What stake does Jio may float?
Jio is considering floating 2.5% stake of the company, Reuters reported citing people familiar with the matter. A smaller public offer could also limit the holding company discount concerns for Reliance Industries, after the listing of Jio, NDTV Profit earlier reported.
Other key details
The company is still discussing the details of the offering, including timing and size, which may change. Reliance Industries has not shared any official updates on the development so far.
Reliance Jio has started to pivot towards artificial intelligence over the last few years. "Jio's over 500 million subscriber base, deep customer insights and pan India distribution network will empower Reliance Intelligence to achieve its aim to make India not just AI-enabled but AI-empowered - where every citizen and enterprise can harness AI tools to create, innovate and grow. This will drive sustained value creation for all stakeholders in the coming years," Akash Ambani said in January.
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