Introduction: Why these two IPOs matter

India’s equity markets are preparing for two of the most significant public listings in their history: Jio Platforms, the digital arm of Reliance Industries, and the National Stock Exchange of India (NSE).

These are not just any IPOs.

• Jio is the backbone of India’s digital economy, valued by global investors between $90–100 billion, and its listing could rival the largest tech IPOs worldwide.

• NSE, India’s dominant stock exchange, commands over 90% market share in cash and derivatives. Its expected valuation runs into ₹2–3 trillion, making it the largest Indian exchange listing ever.

But both listings have been delayed — Jio due to regulatory hurdles around minimum public float rules, and NSE due to governance controversies. Now, SEBI has begun reshaping its rulebook and negotiating settlements, aiming to finally bring these giants to market.

1. SEBI’s New Rulebook for Mega Listings

SEBI’s interventions focus on making mega-IPOs possible without flooding the market.

Old vs New IPO Rules for Large Companies

Why this matters

• Companies like Jio can list with a smaller initial dilution, avoiding pressure on pricing.

• Investors get progressive public float, with better price discovery over time.

• Large anchor investors ensure price stability during and after listing.

2. The Jio IPO: A Digital Giant Prepares for Market

Reliance has already declared that it aims to list Jio Platforms by the first half of 2026. SEBI’s reforms make this feasible by addressing the float and dilution challenges.

Key implications for Jio:

• Smaller IPO size at listing: Instead of being forced to issue billions of dollars’ worth of stock immediately, Jio can list a smaller percentage.

• Global anchor investors: Firms like Facebook, Google, and sovereign wealth funds already own stakes. Expanded anchor quotas will allow Reliance to bring in more long-term investors.

• Retail investor challenge: Reduced MPO means fewer shares for the retail category at IPO, potentially leading to oversubscription and listing premiums.

3. The NSE Listing: Clearing the Roadblocks

The NSE’s IPO has been “ready to launch” for over a decade but stalled due to regulatory disputes, especially the co-location scam and related SEBI investigations.

How SEBI is paving the way:

• Settlement mechanism: NSE has reportedly offered a settlement of ₹13.8 billion to resolve pending cases with SEBI.

• Governance reforms: SEBI has mandated board-level changes, stricter oversight, and compliance frameworks to strengthen exchange credibility.

• Timeline: NSE executives have said that once SEBI clears the settlement, an IPO could be completed within 8–9 months.

For investors, NSE’s IPO offers exposure to a monopolistic, highly profitable exchange business — but governance baggage remains a key risk.

4. Investor Implications: Opportunities and Risks

Opportunities

• Landmark listings: Jio and NSE could together redefine India’s IPO market, attracting global institutional investors.

• Valuation upside: With limited float, strong demand could drive premiums.

• Liquidity boost: Large, well-followed companies bring in more domestic and foreign capital.

Risks

• Concentrated ownership: Lower initial float means majority control remains with promoters, raising governance concerns.

• Market crowding out: These giant IPOs could temporarily divert liquidity from mid- and small-cap IPOs.

• Execution delays: Regulatory approvals, settlements, or global market volatility could push timelines further.

5. Global Comparisons: Lessons from Other Markets

• NYSE & HKEX listings: When major exchanges listed abroad, regulators demanded strict governance firewalls to avoid conflicts of interest. SEBI is expected to follow a similar path with NSE.

• Tech IPO precedents: Jio’s IPO may mirror the scale of Alibaba or Saudi Aramco’s listings, which required special structures to balance investor access with promoter control.

6. What to Watch Next

1. Final SEBI notifications on MPO and MPS timelines.

2. Reliance’s DRHP filing for Jio Platforms (expected 2025–2026).

3. SEBI’s decision on NSE’s settlement application.

4. Global market conditions — as mega-IPOs often depend on supportive liquidity cycles.

Conclusion: A Defining Moment for Indian Markets

SEBI’s calibrated reforms — lowering immediate float requirements, extending compliance timelines, and mandating governance safeguards — are designed to unlock the long-awaited listings of Jio Platforms and NSE.

If executed transparently, these IPOs could:

• Deepen India’s capital markets,

• Set new valuation benchmarks, and

• Attract global pools of capital into the Indian growth story.

But regulators, investors, and companies alike must balance ambition with caution. For retail investors, these will be historic opportunities — but also events requiring careful evaluation of pricing, governance, and long-term strategy.