In a move that could significantly impact the Indian stock market, the Securities and Exchange Board of India (SEBI) has updated its listing rules, potentially paving the way for a smoother initial public offering (IPO) for Jio Platforms, the digital unit of Reliance Industries Limited (RIL).

Key Changes in SEBI Regulations

SEBI has introduced two major changes to its listing rules:

1. Reduced Minimum IPO Size: For companies with a market capitalization exceeding ₹4.70 lakh crore ($57.00 billion), the minimum IPO size has been reduced from 5% to 2.5% of the post-issue market capital.

2. Extended Deadline: The timeline for meeting the 25% minimum public shareholding requirement has been extended.

Impact on Jio Platforms' IPO

These regulatory changes are expected to have a substantial impact on Jio Platforms' planned IPO, which is anticipated in early 2026. According to Citi research:

• Jio Platforms, valued at approximately ₹11.10 lakh crore ($135.00 billion), will benefit from the new rules.
• The company will now need to sell only half as many shares in its IPO as RIL works to reduce its 66% stake in the unit.
• Jio Platforms operates India's largest telecom company.

Potential Benefits for Investors and Jio Platforms

The SEBI rule changes are expected to bring several advantages:

1. Easier Absorption: Investors may find it easier to absorb the offering without putting downward pressure on the stock price.
2. Reduced Hold-Co Discount Concerns: The new rules may help alleviate worries about holding company discounts.
3. Fair Market Valuation: The changes could allow for a more accurate market valuation of Jio Platforms.

Implications for the Indian Stock Market

These regulatory updates signify SEBI's efforts to adapt to the evolving needs of the Indian stock market, particularly in accommodating large-cap companies. As India's digital economy continues to grow, such changes may attract more tech giants to consider public listings, potentially reshaping the landscape of the Indian stock market.

The success of Jio Platforms' IPO, when it occurs, could serve as a litmus test for these new regulations and their effectiveness in balancing the interests of companies and investors alike.

Mukesh Ambani's Reliance Jio is set to make waves in the Indian stock market with plans for what could become the country's largest public listing. The telecom giant is preparing to file for an Initial Public Offering (IPO), aiming for a listing in the first half of 2026.

Potential Record-Breaking Valuation

The upcoming IPO has caught the attention of investors and market analysts alike, with projections suggesting it could raise between Rs 58,000 crore to Rs 67,500 crore. This estimate is based on the scenario where existing investors sell just 5% of their stake. If realized, this would far surpass the current record held by Hyundai Motor India's Rs 27,870 crore listing.

Valuation Estimates

Brokerage firms have provided varying valuations for Jio:

Goldman Sachs has provided the highest valuation at $154.00 billion, while other brokerages estimate the company's worth between $121.00 billion and $154.00 billion.

Shareholding Structure

Unlike the recent Jio Financial Services spin-off, Reliance Industries Limited's (RIL) 44 lakh shareholders will not receive direct Jio shares. Instead, they will benefit through RIL's 66.3% ownership in Jio. This structure allows RIL to maintain majority control but may result in holding company discounts.

Strong Financial Performance

Jio Platforms has demonstrated robust financial growth:

Market Position

Jio has solidified its position as a telecom powerhouse:

• Total subscribers: Over 500 million
• 5G subscriber base: Exceeding 220 million
• Global Ranking: World's second-largest telecom operator after China Mobile

Key Stakeholders

Apart from RIL's majority stake, other significant shareholders include:

• Meta (formerly Facebook): 10% stake
• Google: 7.7% stake
• Various private equity investors: 16% combined stake

The upcoming Reliance Jio IPO is poised to be a landmark event in India's capital markets, reflecting the company's strong market position and financial performance. As the first half of 2026 approaches, investors and market watchers will be keenly following developments in this potentially record-setting public offering.