New MPS Norms to Boost Mega IPOs: Reliance Jio, NSE, Flipkart in Focus

India’s capital markets are set for a significant boost as the Central Government has relaxed the Minimum Public Shareholding (MPS) norms. The move is expected to pave the way for several high-value companies to launch their Initial Public Offerings (IPOs) by allowing them to offer a smaller portion of equity to the public at the time of listing.

This regulatory shift aims to make Indian stock markets more attractive for large corporations while aligning domestic rules with global listing practices.

What is the New MPS Framework?

The revised MPS norms introduce a more flexible structure for companies based on their post-issue market capitalisation.

Updated Public Shareholding Requirements

• Companies with market cap between ₹50,000 crore and up to ₹1 lakh crore

  • Minimum public float: 8% (earlier 10%)

• Companies with market cap between ₹1 lakh crore and up to ₹5 lakh crore

  • Minimum public float: 2.75% (earlier 5%)

• Companies with market cap above ₹5 lakh crore

  • Minimum public float: 1% (earlier 5%)

Why This Matters

This change reduces the pressure on large firms to dilute a significant stake during IPOs, making listings more feasible and market-friendly.

Timeline to Achieve 25% Public Shareholding

The government has also clarified a structured roadmap for companies to meet the long-term requirement of 25% public shareholding.

Key Timelines

• Companies with less than 15% public shareholding at listing:

  • 5 years to reach 15%

  • 10 years to reach 25%

• Companies with more than 15% public shareholding at listing:

  • 5 years to reach 25%

These timelines will also apply to companies already listed before the new rules came into effect.

Why the New MPS Norms Are Significant

The revised framework addresses a major concern among large corporations—difficulty in offloading large stakes in one go due to limited market absorption capacity.

Key Benefits

• Encourages mega IPOs

• Improves market liquidity over time

• Aligns India with global listing standards

• Supports high-valuation startups and conglomerates

Experts believe this reform could trigger a surge in large IPOs in 2026, with companies expected to raise over ₹2.65 lakh crore.

Big IPOs Likely to Benefit from New MPS Rules

Several high-profile companies are preparing to enter the public markets and are expected to benefit significantly from the relaxed norms.

Reliance Jio IPO

• Issue Size: ₹33,000 to ₹37,000 crore

• Market Cap: ₹11.9 to ₹15.6 lakh crore

• Status: Draft prospectus under preparation

Reliance Industries Chairman Mukesh Ambani confirmed at the 48th AGM that the IPO may launch in the first half of 2026. The telecom giant may benefit significantly as it plans to divest less than 2.5% stake—something not feasible under earlier MPS norms.

National Stock Exchange of India (NSE) IPO

• Issue Size: ₹23,000 to ₹38,000 crore

• Market Cap: ₹6.44 to ₹7.36 lakh crore

• Status: Regulatory clearance received

In January 2026, NSE secured a No Objection Certificate (NoC) from SEBI. The exchange has appointed 20 merchant bankers and eight law firms, including leading global and domestic institutions, to manage its IPO process.

Flipkart IPO

• Issue Size: ₹67,000 to ₹83,000 crore

• Market Cap: ₹5.5 to ₹6.4 lakh crore

• Status: Preparing for domestic listing

Flipkart has shifted its legal domicile from Singapore to India, a crucial step toward launching its IPO in the domestic market.

SBI Mutual Fund IPO

• Issue Size: ₹12,500 to ₹13,500 crore

• Market Cap: ₹1.3 to ₹1.5 lakh crore

• Status: DRHP expected soon

The fund house plans to divest up to 10% stake via an Offer for Sale (OFS), with the IPO targeted for the second half of 2026.

Other Potential Mega Listings

Reliance Retail

• Expected Issue Size: Around ₹41,500 crore

• Market Cap: ₹8.3 lakh crore

• Timeline: Expected IPO by FY28

Market Outlook for IPOs in 2026

India is witnessing a strong IPO pipeline driven by:

• Increasing retail investor participation

• Strong domestic liquidity

• Growing startup ecosystem

• Regulatory support like MPS reforms

The relaxed norms are expected to make India one of the most attractive IPO destinations globally.

Conclusion

The revised MPS norms mark a strategic shift in India’s capital market regulations, making it easier for large corporations to go public without immediate pressure to dilute significant ownership. By enabling phased equity dilution, the government has addressed a long-standing structural challenge in IPO execution.

With mega offerings from companies like Reliance Jio, NSE, and Flipkart on the horizon, the Indian IPO landscape is poised for a transformative phase in 2026. These developments not only enhance market depth but also provide investors with opportunities to participate in some of the country’s most valuable and high-growth businesses.