Reliance Jio, NSE, Flipkart among mega IPOs likely to benefit from new MPS norms; check details

The Central government has eased the minimum public shareholding (MPS) rules paving the way for large companies to float their initial public offering (IPO) by offering smaller portion of shares to the public.

The move will make the Indian markets more attractive for large, high valuation companies by reducing the urgency to dilute more stake.

The MPS rule change aligns Indian regulations with global practices and addresses the market concern that large companies may face difficulties in diluting substantial stakes via IPO as the market may not be able to absorb such a large supply of shares.

Snapshot of new MPS framework

• Companies with post-issue market cap between ₹50,000 crore and upto ₹1 lakh crore, the minimum public float is set at 8% compared to earlier requirement was 10%.
• For companies with a market cap between ₹1 lakh crore and upto ₹5 lakh crore, the minimum public float is set at 2.75% compared with the earlier requirement of 5%.
• Companies with market cap of above ₹5 lakh crore, the minimum public float requirement has been reduced further to just 1% from 5% earlier.

Timeline to achieve 25% public shareholding

• The new MPS rule has clearly defined the path to reach a 25% public shareholding. Companies with a public shareholding of less than 15% at listing ‌will ⁠have five years to reach 15% and 10 years to reach 25%.

• If the public float is more than 15% at listing, the company will have five years to reach 25%.

• This new timelines of public shareholding will also apply to companies that were listed before this new MPS announcement.

As per experts, this new MPS framework looks attractive for the large companies and may led to more number of big ticket IPOs in coming months. The rule changes comes amid strong pipeline of public issues expected in 2026 to raise over ₹2.65 lakh crore.

Reliance Jio IPO

Reliance Industries Chairman Mukesh Ambani at the 48th AGM confirmed that the Initial Public Offering (IPO) for Jio Platforms could happen in the first half of 2026. Reliance Jio Platforms could be one of the key beneficiary of new MPS framework as telecom giants aims to divest less than 2.5% stake which was not possible under earlier MPS rule. The company is currently in the process of preparing the IPO draft prospectus. According to a Bloomberg report, Reliance Jio could have a valuation of up to $170 billion, placing Jio among the most valuable domestic companies.

NSE IPO

National Stock Exchange of India (NSE) IPO is much anticipated public issue of 2026. In January 2026, NSE received No Objection Certificate (NoC) from SEBI clearing the regulatory hurdle for the proposed IPO. NSE has appointed as much as ​20 merchant bankers and eight ⁠law firms for its long-awaited IPO. Investment bankers include Kotak Mahindra Capital, SBI Capital ⁠Markets, J.P. Morgan, Citigroup and many others. The selected intermediaries will assist in multiple aspects of the proposed offering, including regulatory filings, due diligence, documentation and other aspects. NSE IPO is expected to be complete offer-for-sale (OFS) by existing shareholders.

Flipkart IPO

E‑commerce giant, Flipkart plans to bring its IPO this year. The company’s IPO could have potential valuation of ₹5.5 to ₹6.4 lakh crore as per media reports. . The company has shifted its legal domicile from Singapore to India, which is a key step in preparing for a domestic IPO listing.

SBI Mutual Fund IPO

SBI Mutual Fund IPO is another much awaited IPO of 2026. Last year, CS Setty, chairman of State Bank of India (SBI) has confirmed that the bank aims to complete the initial public offering of SBI Mutual Fund in the next 12 months. SBI Mutual Fund plan to sale up to 10% stake sale via an Offer for Sale (OFS). The company is expected to Draft Red Herring Prospectus (DRHP) in coming months and targeting IPO by second half of 2026.