Jio ipo: Market regulator SEBI has made some changes in its rules. This will give a big benefit to companies bringing IPOs. SEBI has relaxed the rules of minimum public offer (MPO) and minimum public shareholding (MPS). With this, veteran companies like Reliance Jio and NSE can bring their IPOs without heavy on the market. With this new rule, the size of the IPO of these companies can be half.
Rules to bring IPOs for big companies
Till now, companies with market value more than Rs 5 lakh crore had to sell at least 5 percent stake through IPOs. Brokerage firm Goldman Sachs has estimated that Reliance Jio’s market in Bull Market will be more than Rs 13.5 lakh crore. In such a situation, in the event of selling 5 percent stake according to the old rule, the size of Reliance Jio’s IPO would have been Rs 58,000-67,500 crore. Experts believe that this is no less than a challenge for the stock market.
Learn what is the new rule of SEBI?
In SEBI’s new proposal, for companies whose market value is more than Rs 5 lakh crore, now the need to sell 5 percent stake has been abolished. Now under the new rule, they will have to sell only 2.5 percent stake. With this, the size of Jio’s IPO will be reduced to a little more than Rs 30,000 crore.
Reliance Chairman Mukesh Ambani had said that Reliance Jio’s IPO could be launched in the first half of 2026. Brokerage firm City said that this change will not only reduce the immediate supply burden, but will also reduce the concern of ‘holding company discount’ for Jio’s original company Reliance Industries.
LIC was given exemption
The new rule has also extended the deadline to meet the requirement of 25 percent Mbps for companies, which has allowed them to gradually reduce their stake for 10 years. In the year 2022, SEBI gave LIC a big discount. The company was allowed to sell a 3.5 percent stake of its equity to raise Rs 21,000 crore, but now with this new rule, many companies can take entry in the market.
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