India’s government has approved a cut to the minimum proportion of shares large companies looking to list must sell to 2.5% of their share capital from 5%, the markets regulator said on Thursday, paving the way for Reliance Jio Platforms’ highly-anticipated IPO.
The Securities and Exchange Board of India also agreed in principle to the National Stock Exchange’s application to settle a legal dispute that has delayed the NSE’s initial public offering, SEBI Chair Tuhin Kanta Pandey said.
The regulator last year halved the minimum IPO float for large companies, allowing those valued above 5 trillion rupees ($57 billion) after listing to sell just 2.5% of their paid-up capital.
The measure, aimed at making it easier for the market to absorb the hefty offerings, was awaiting government approval to come into effect.
Reliance’s telecom arm Jio Platforms is considering a listing this year that would float 2.5% of the firm, potentially making it India’s largest-ever IPO worth more than $4 billion.
The regulator has been easing regulations and fast-tracking clearances in the world’s second-largest market for initial public offerings.
On Saturday, Pandey said that the regulator will this month issue the approval needed for NSE to launch its stock market offering.
Reuters reported on Monday that the exchange plans to file draft listing papers by end-March and is in discussions with investment bankers and law firms to gauge investor appetite.
NSE, the world’s largest derivatives exchange, has been trying to go public since 2016 but failed to secure regulatory approval due to pending legal cases and governance concerns. Its main domestic rival BSE Ltd BSEL.NS is listed.
Reuters
