India lowers minimum IPO share float to 2.5% for high-value firms, easing large listings and boosting capital markets.

India has revised its IPO rules, allowing companies with a post-issue market value over ₹5 lakh crore to offer as little as 2.5% of shares in their initial public offering, down from 5%. The change, effective under new Securities Contracts (Regulation) Amendment Rules, 2026, aims to ease large listings like Reliance Jio Platforms and the National Stock Exchange. Firms with lower valuations face higher minimum float requirements, and all companies must meet a mandatory glide path to reach 15% public ownership within five years and 25% within ten, if below 15% at listing. The reform is designed to revive the sluggish 2026 IPO market and maintain India’s global capital-raising prominence.