Shares of Reliance Industries Limited (RIL) will be in sharp focus on September 15, 2025, after the Securities and Exchange Board of India (Sebi) cleared a major regulatory hurdle for mega IPO-bound companies. Sebi has relaxed the rules on minimum public offer (MPO) and minimum public shareholding (MPS) norms, directly benefitting Reliance Jio’s much-awaited listing.
What Sebi changed
Until now, companies with a market capitalization above Rs 5 lakh crore were required to offload at least 5% of their equity during an initial public offering (IPO). For Reliance Jio, currently valued at over Rs 13.5 lakh crore in Goldman Sachs’ bull case estimate, this would have meant raising upwards of Rs 58,000–67,500 crore in one go — a size many analysts argued the Indian equity markets would find difficult to absorb.
Sebi’s new framework halves this requirement to 2.5%, meaning Jio would now need to raise just above Rs 30,000 crore at the time of listing. Additionally, the regulator has extended the timeline for meeting the 25% MPS rule to as long as 10 years, allowing firms to dilute gradually without draining liquidity from the secondary market.
Why this matters for Reliance
Reliance chairman Mukesh Ambani has already confirmed that Jio Platforms will come to the public markets in the first half of 2026, in what is expected to be one of India’s largest-ever IPOs. Market watchers believe Sebi’s move has:
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Reduced concerns about a sudden supply glut in equities.
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Addressed fears of a “holding company discount” for Reliance Industries, as noted by brokerage Citi.
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Created a more investor-friendly pathway for Reliance’s digital arm to unlock value.
Market outlook
Analysts expect Reliance shares to remain in focus on Monday, with the regulatory easing viewed as a significant tailwind. The reduced burden of fundraising not only strengthens sentiment around Jio’s eventual IPO but also supports Reliance’s broader demerger and value-unlocking strategy.
