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Upcoming IPOs India: NSE, Reliance Jio and You

NSE and Reliance Jio IPOs could be India's biggest. Learn how retail investors can apply, what to watch, and our take on both offerings.

Upcoming Big IPOs: NSE, Reliance Jio and What They Mean for You — illustrative featured image
In March 2024, the NSE filed confidentially with the Securities and Exchange Board of India. The exchange had spent years watching its rival, the BSE, trade publicly. Now it wants a piece of that action. Meanwhile, Reliance Jio, the telecom arm that quietly became India's largest mobile network, has been the subject of IPO talk since 2022. Both are what market watchers call "mega-IPOs." And if you hold a demat account, they matter more than you might think. ## Why these two IPOs are different from your usual SME offering Most IPO chatter in India revolves around small and medium enterprises. A textile company in Surat lists on the NSE Emerge platform, lists at a 40 percent premium, and then drifts back to earth. That is not what we are talking about here. The NSE IPO and the Reliance Jio IPO are large enough to move the benchmark indices. They will pull in foreign institutional money, mutual fund allocations, and retail applications in numbers that dwarf the typical issue. When the NSE eventually lists, it will be one of the few exchanges in the world trading on its own platform. The BSE did it in 2017. The London Stock Exchange, Nasdaq, and Hong Kong Exchange all trade publicly. The NSE is late to its own party. Reliance Jio is a different beast. It is not just a telecom company. It owns the largest subscriber base in India, a fiber broadband business, a cloud infrastructure arm, and a stake in the digital payments space. When Reliance Industries announced plans to unlock value, the market read it as a signal: Jio could be India's largest IPO ever, potentially raising over Rs 40,000 crore. ## The NSE IPO: what we know about the numbers The National Stock Exchange filed its draft red herring prospectus (DRHP) confidentially with SEBI. Confidential filings let companies test the waters without public scrutiny. That is a change from the old regime, where every draft was public from day one. What do we know? - The IPO will be an offer for sale (OFS). Existing shareholders, including state-owned banks and private equity firms, will sell part of their stake. The NSE itself will not receive fresh capital. - The exchange has been valued at around Rs 3.5 lakh crore in private deals, according to multiple reports. That would make it one of the top 10 listed companies in India by market cap. - Regulatory hurdles remain. SEBI has been tightening rules for market infrastructure institutions. The NSE must comply with ownership and governance norms before it can list. For retail investors, the OFS structure means you are buying from sellers, not funding the company's growth. That is not necessarily bad. The NSE is a cash machine. It earns fees on every trade, every data feed, and every listing. But you are paying a premium for a mature business, not betting on a startup. ## Reliance Jio IPO: the 5G and broadband story Reliance Jio disrupted Indian telecom in 2016 with free voice calls and cheap data. It forced competitors to merge or exit. Today, it has over 470 million subscribers. The next phase is about monetization: 5G, home broadband, and enterprise services. An IPO would let Reliance Industries pare debt and give public investors a direct stake in India's digital infrastructure. The timing is uncertain. Mukesh Ambani has said the listing will happen "at the right time." Analysts speculate 2025 or 2026. Here is a rough comparison of the two offerings: | Feature | NSE IPO | Reliance Jio IPO | |---------|---------|------------------| | Type | Offer for sale | Likely fresh issue + OFS | | Estimated size | Rs 20,000-30,000 crore | Rs 40,000+ crore | | Sector | Financial infrastructure | Telecom and digital services | | Retail appeal | Moderate (high valuation) | High (brand recognition) | | Key risk | Regulatory changes | Competition from Airtel, Vodafone Idea | ## How retail investors can actually participate You do not need a special account. A regular demat and trading account with a broker like Zerodha, Groww, or ICICI Direct is enough. The process is the same as any other IPO. But the mechanics matter. Here is what to watch: 1. **Check the price band and lot size.** NSE shares trade at high prices in the unlisted market. The IPO lot size might be one share or a small bundle. That affects how much capital you need to block. 2. **Understand the category you are applying under.** Retail investors (up to Rs 2 lakh) get a 35 percent reservation in most mainboard IPOs. High net worth individuals (HNIs) have a separate quota. You cannot apply in both. 3. **Use UPI mandates.** Since 2019, retail applications up to Rs 2 lakh can be processed through UPI. The money stays in your bank until allotment. No need to park funds with the broker. 4. **Do not chase the grey market premium.** The unofficial "grey market" quotes a premium before listing. It is speculative and often wrong. We have seen IPOs list below their grey market price many times. ### A note on taxes If you sell within 12 months, short-term capital gains tax applies at 20 percent (for listed equity). Hold for more than a year and long-term capital gains tax kicks in at 12.5 percent above Rs 1.25 lakh. These rates changed in 2024. Plan your exit accordingly. ## Our take: should you apply? We are not fans of applying to every IPO that comes along. Most retail investors lose money on overhyped issues. But these two are different. **NSE:** Apply if you get an allotment. The exchange has a near-monopoly on equity derivatives in India. Its profit margins are obscene. The risk is valuation. If the IPO prices at 40 times earnings, you are paying for perfection. But the NSE is a compounder. We would hold it for years, not flip it on listing day. **Reliance Jio:** This is a bet on India's digital consumption story. Jio has pricing power, a huge subscriber base, and a parent with deep pockets. The competition (Bharti Airtel, Vodafone Idea) is weaker. But the IPO price will likely be rich. If you already own Reliance Industries, you have indirect exposure. Adding Jio directly means doubling down on the same promoter. That is fine if you believe in the Ambani execution machine. We do, cautiously. For a diversified approach, consider applying to both through the retail category. Do not borrow money to apply. Do not sell existing holdings to fund an IPO application. The allotment is not guaranteed. Your capital could be locked for a week with no return. ## FAQ ### What is the minimum amount needed to apply for the NSE IPO? It depends on the final price band and lot size. If the NSE prices at Rs 3,000 per share and the lot size is one share, the minimum application is Rs 3,000. If the lot size is five shares, it is Rs 15,000. The DRHP will confirm this closer to launch. ### Can I apply for both the NSE and Reliance Jio IPOs from the same bank account? Yes. There is no restriction on applying to multiple IPOs. You can use the same UPI ID for both. Just make sure you have enough balance in your bank account to cover the mandate amount for each application. ### Will the Reliance Jio IPO be available to NRIs and foreign investors? Yes, but the process differs. NRIs can apply through the non-resident Indian (NRI) category if their broker supports it. Foreign institutional investors apply through the qualified institutional buyer (QIB) quota. Retail investors outside India should check with their broker about eligibility and tax treatment. The IPO calendar for 2025 and 2026 is filling up. The NSE and Reliance Jio are the headliners, but there are others: Ola Electric, Swiggy, and PharmEasy have all filed or are rumored to file. Our advice is simple. Read the DRHP. Check the valuation. Apply only if you would buy the stock in the open market at that price. The listing pop is nice, but it is not a strategy. ## Related on this site - [Fed Rate Hikes: What They Mean for Indian Stocks and Your Portfolio](/finance/blog/fed-rate-hikes-what-they-mean-for-indian-stocks-and-your-portfolio) - [New Stock Closing Auction: How It Affects Your Trades and What to Watch](/finance/blog/new-stock-closing-auction-how-it-affects-your-trades-and-what-to-watch) - [NSE IPO Valuation: Is $46 Billion Too Expensive?](/finance/blog/nse-ipo-valuation-is-46-billion-too-expensive)

Frequently asked questions

A note on taxes If you sell within 12 months, short-term capital gains tax applies at 20 percent (for listed equity). Hold for more than a year and long-term capital gains tax kicks in at 12.5 percen

We are not fans of applying to every IPO that comes along. Most retail investors lose money on overhyped issues. But these two are different.

What is the minimum amount needed to apply for the NSE IPO?

It depends on the final price band and lot size. If the NSE prices at Rs 3,000 per share and the lot size is one share, the minimum application is Rs 3,000. If the lot size is five shares, it is Rs 15,000. The DRHP will confirm this closer to launch.

Can I apply for both the NSE and Reliance Jio IPOs from the same bank account?

Yes. There is no restriction on applying to multiple IPOs. You can use the same UPI ID for both. Just make sure you have enough balance in your bank account to cover the mandate amount for each application.

Will the Reliance Jio IPO be available to NRIs and foreign investors?

Yes, but the process differs. NRIs can apply through the non-resident Indian (NRI) category if their broker supports it. Foreign institutional investors apply through the qualified institutional buyer (QIB) quota. Retail investors outside India should check with their broker about eligibility and tax treatment.

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