Reliance Ropes In Morgan Stanley, Goldman Sachs For Jio IPO As It Awaits Revised Listing Norms

Mukesh Ambani-led Reliance has roped in Morgan Stanley and Goldman Sachs for the IPO of Jio Platforms, even as it awaits a final government notification on revised IPO norms, before it files its draft red herring prospectus (DRHP) for the IPO, according to company officials.

Jio Platforms, the parent company of Reliance Jio, has been valued at around Rs 15 lakh crore. Offloading just 2.5% of the company is expected to raise approximately USD 4.5 billion or Rs 37,000 crore in the next few months, which is anticipated to occur in the first half of 2026.

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The latest move by Reliance came after SEBI Chairman Tuhin Kanta Pandey confirmed last week that the government has already approved a reduction in the minimum IPO float for large companies to 2.5 per cent from 5 per cent, though the Union Finance Ministry has not yet issued a formal notification. This is the crucial notification that Reliance awaits to begin the IPO process of Jio Platforms.

Meanwhile, SEBI has relaxed minimum public shareholding norms according to which companies listing with less than 15 per cent public float will now have five years to reach that level and 10 years to scale up to 25 per cent, compared to earlier deadlines of two years and five years, respectively. These relaxed norms are expected to significantly ease post-listing concerns for Jio Platforms.

The Jio Platforms IPO is expected to be largely an offer-for-sale by financial investors, with strategic shareholders like Reliance, Meta and Google, which are likely to remain invested.

However, a Jio IPO would effectively turn Reliance Industries Ltd into a holding company, which could potentially trigger a valuation discount of around 5 per cent to 20 per cent.

According to Citi, SEBI’s new listing norms have “dispelled concerns” about holding company discounts, though BNP Paribas has already begun factoring in a 10 per cent discount for RIL’s stake in Jio Platforms.

As per SEBI’s present framework, if Jio is valued at Rs 12 lakh crore, the company could raise around Rs 30,000 crore by selling only 2.5 per cent, which is a sharp contrast to the more than Rs 60,000 crore that would have been required according to earlier norms.