Reliance Jio, India's largest telecom operator, is going to benefit while going for an IPO (Initial Public Offer) in 2026. The company is confirmed to go for IPO in 2026 by Mukesh Ambani, Chairman and Managing Director, Reliance Industries Limited (RIL). RIL is the parent company of Jio. Reliance Jio is going to benefit from a rule change that SEBI (Securities Exchange Board of India) has announced. What is the rule, and what will be the benefit? Let's understand.
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Reliance Jio had halted its IPO plans because of one reason - its large market cap. According to the current rules of SEBI, when a company goes to public, it needs to ensure that at least 5% of its market cap should be the size of the IPO. But this would be too large for the Indian market to absorb, worried Reliance. Thus, SEBI has changed the rules and said that now, companies with over $57 billion market cap can now offload just 2.5% shares in the market, instead of the older rule of 5%.
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This will allow the telco to have an IPO which the market has the capability of absorbing. SEBI has also allowed an extended timeline for 25% public shareholding milestone. This will give the company breathing room to go for IPO and focus on business operations.
