India cuts minimum IPO float for mega listings; clears path for Jio Platforms, NSE IPO

India’s government has approved a reduction in the minimum share sale requirement for large companies planning to list, lowering the IPO float to 2.5% from 5%, according to markets regulator SEBI on Thursday. The move is expected to make it easier for investors to absorb massive public offerings and opens the door for several big-ticket listings in the near term.

SEBI Chair Tuhin Kanta Pandey said the regulator also agreed in principle to the National Stock Exchange’s application to settle a legal dispute that has delayed its long-awaited IPO. Pandey added that SEBI is expected to issue the required approval for the NSE offering later this month.

The revised rule, first announced last year for companies valued above 5 trillion rupees ($57 billion) after listing, is widely seen as enabling Reliance’s telecom arm Jio Platforms to proceed with its highly anticipated IPO. Jio Platforms is reportedly considering a listing this year that could involve floating 2.5% stake, potentially making it India’s largest-ever IPO, estimated to raise over $4 billion.

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