You’ve probably come across the terms SME IPO and unlisted shares quite often. Both let you invest in a company before it becomes a household name, putting you in as an early-stage investor. But the mechanics, the risks, and the rules governing each are quite different.Unlisted shares are equity shares of a private company that aren’t listed or traded on a recognised stock exchange like the NSE or BSE. They’re usually issued by private companies, startups, and pre-IPO businesses before they go public, and they change hands through private placements or regulated unlisted-share platforms like Palnify Capitals, Unlisted Zone etc. Since there is no exchange like NSE or BSE involved, unlisted shares have lower liquidity, due to which buying and selling of unlisted shares are difficult and they have far less publicly available financial data to analyse, which makes them inherently riskier. An SME IPO, on the other hand, involves buying shares of a small or medium-sized company at the exact moment it makes its public debut on a regulated exchange. Here’s the major differences among two:<ul><li>Investment Stages and Platform </li></ul>With an SME IPO, you’re investing at the moment the company goes public. By that point, it has already met SEBI and exchange eligibility norms, such as a minimum net worth and a functional track record. You apply through the regular IPO process, via brokers like Zerodha or Groww, on the BSE SME or NSE Emerge platform. Unlisted shares are bought at an earlier, far more informal stage. There’s no central exchange involved; instead, specialised platforms and brokers, such as Planify and Unlisted Zone, or boutique wealth desks, aggregate buyers and sellers and facilitate the transfer of shares directly into your demat account.<ul><li>Liquidity and Exit strategies </li></ul>Once listed, SME IPO shares can technically be sold on the exchange any time the market is open. But in practice, liquidity is thin. Trading volumes on SME counters are a fraction of mainboard stocks, and since SME shares trade in lots rather than single units, you may have to wait for a buyer or accept a lower price to exit quickly. To address this, SEBI mandates that every SME IPO appoint a market maker for at least three years post-listing, whose job is to continuously quote buy and sell prices.Since there’s no exchange to sell unlisted shares on, your main exit route is finding a buyer through the same platform you bought from, or waiting for the company to eventually launch its own IPO. On top of that, pre-IPO investors are typically subject to a mandatory lock-in period of about six months from the date of listing, during which the shares can’t be sold even after the company finally goes public.<ul><li>Minimum Investment Requirement </li></ul>SEBI has deliberately set a high entry barrier for SME IPOs to keep small, inexperienced retail investors out of high-risk segment. Under current norms, retail investors must apply for a minimum of two lots, which typically translates into an investment of roughly around ₹ 2 lakh to ₹ 4 lakh, depending upon the issue size. However, the minimum investment for unlisted shares is usually lower than SME IPOs which is counterintuitive, though there is no set minimum investment. Several platforms let you start investing with as little as ₹10,000–₹50,000, since there’s no SEBI-mandated minimum. That said, for well-known, high-demand names approaching their IPO, minimum lot sizes can easily push the ticket size into the ₹1 lakh–₹2 lakh range or beyond.<ul><li>Risk-Return Profile </li></ul>Both sit in the high-risk, high-reward end of the investment spectrum. Liquidity risk is the one they share: SME IPOs typically see low trading volumes, and unlisted shares are just as hard to offload, since finding a counterparty willing to deal at a fair price isn’t easy. Unlisted shares carry an extra layer of risk, though - valuation uncertainty. With no exchange-driven price discovery, you’re often relying on the company’s last private funding round or the platform’s “indicative price,” neither of which may reflect what the business is genuinely worth. There is also significant information asymmetry, as privately listed companies aren’t obligated to share detailed financial report publicly this makes analysis of financial performance far more difficult than public companies.<ul><li>Taxation</li></ul>Tax treatment depends entirely on the holding period, and the threshold differs between the two. For SME IPO shares, selling within 12 months counts as short-term and is taxed at 20%. Hold beyond 12 months, and it qualifies as long-term capital gains, taxed at 12.5%, with the first ₹1.25 lakh of such gains in a financial year exempt from tax.Unlisted shares follow a longer timeline, for them holding period of 24 months or less is classified as short-term investment, with gains simply added to your total income and taxed as per applicable slab rate. Cross the 24-month mark, and it’s classified as long-term, taxed at a flat 12.5% with no indexation benefit, regardless of your income slab. In nut shell, both SME IPOs and unlisted shares give you chance to invest in companies before they become well known, but both are governed by completely different rules and have different timeline for calculation of text and also have different risk-return profile. An SME IPO gives you a regulated, exchange-listed entry point with some liquidity and a clearer tax framework, in exchange for a high minimum ticket size and real volatility risk. Unlisted shares offer an even earlier entry into a potential growth story, sometimes at a lower ticket size, but with opaque pricing, weak disclosure, and an exit timeline entirely outside your control.

Unlisted Shares and SME IPOs both let you invest in a company before it becomes a household name, putting you in as an early-stage investor. But the mechanics, the risks, and the rules governing each are quite different.

SME IPO vs Unlisted Shares: Which Investment Is Better?

“Quality Over Quantity” &amp; “Larger Deal Size” The SME IPO segment, which includes the BSE SME and NSE Emerge segments for small and medium enterprises, has seen a radical change in the past two years. Having gone through a phase of extremely fast growth, sometimes even frothy growth, 2026 seems to be a year where things are consolidating and settling down with caution. The top trends in the market this year include: Regulatory tightening is changing the companies that get to list In March 2025, SEBI introduced stricter regulatory norms for the <a target="_blank" href="https://www.planify.in/sme-ipo/">SME IPO</a> ecosystem, which require companies to show a minimum EBITDA of ₹1 crore in at least two of the last three financial years before they can go public. This one change has been the biggest gatekeeper in the market, filtering out shell-like or barely-profitable companies that previously used the SME route to raise easy capital. Along with the profitability filter, SEBI also limited the amount promoters can cash out at IPO. The offer for sale is now limited to a maximum of 20% of the total issue size and no individual selling shareholder can sell more than 50% of their existing shareholding. Promoters' stake above the minimum promoter contribution would have a staggered lock-in of 50 per cent for one year and the balance 50 per cent for two years to ensure promoters remain financially invested in the company post listing. And there are limitations on how the funds can be spent. Proceeds of SME IPO cannot be used for repayment of loans of promoters or related parties. General corporate purposes will be limited to 15% of the issue size or ₹10 crore whichever is lower. Now, SME-listed entities are required to follow the same related-party transaction norms as companies listed on the mainboard, with a materiality threshold of 10% of annual consolidated turnover or ₹50 crore. Retail entry has become restricted – intentionally The minimum size of applications for SME IPOs has been hiked to two lots from one lot, taking the minimum amount of money invested to about ₹2 lakh. The exchanges have eliminated the cut-off price bidding facility and have increased the minimum tick size in an effort to weed out retail investors who would go after allotment without having any clue about the price. As one fund manager said, "Only serious investors who do their homework on the company should apply," because SME stock is so volatile. This is an immediate reaction to the speculation mania witnessed in 2023-24. The applicant versus allotment ratio increased in SMEs’ IPOs from roughly 4x in fiscal year 2022 to a high of 46x in fiscal year 2023, and 245x in fiscal year 2024 according to SEBI's figures. A level of oversubscription that regulators saw as a red flag for speculative, not fundamentals-driven, demand.

A credibility clampdown amidst scandals of fund diversion While in FY2023-24 alone there were a record number of 196 IPOs by SMEs worth more than ₹6,000 crore, this fast growth brought with it issues with corporate governance, where promoter-driven companies were misusing the IPO funds by diverting them to entities associated with them using circular transactions. SEBI’s cancellation of the IPO of Trafiksol ITS Technologies – which was oversubscribed by 345 times before it came to light that fund diversion was taking place – turned out to be a lesson well learnt. The draft red herring prospectus issued in the SME IPOs will now have to be open to public comments for 21 days, and the stock exchanges will have to make this process known through newspaper advertisements and QR codes. A stiffer quality criteria for migration to the mainboard Companies that have outgrown the small-cap platform find that there is a tough criterion for them to pass if they have to migrate to the next level. The NSE's new migration criteria that come into effect in May 2025 include revenue from operations over ₹100 crore in the last financial year, net worth of ₹75 crore or more, minimum three-year stay on the SME platform, paid-up equity capital of ₹10 crore or more, average market capitalisation of ₹100 crore, and operating profit over two of the last three years. In case of a change of promoter resulting in more than a 51% change in shareholding, the DRHP can be filed only one year after such a change. Trade-off between slowing down and maturing in the long run The market players agree on one thing - the changes will result in a slowdown of listing activities in the short term. In particular, the industry representatives observe that although the adoption of these regulations may result in a certain level of slowing down of SMEs' IPO listings in the short term, the aim is to create a matured environment - in other words, a "corrective step". Diversification across sectors outside the conventional While previous SME IPO cycles had relied largely on manufacturing and conventional trading sectors, 2026 has witnessed the emergence of specialized sectors like fintech and agritech gaining significant traction among investors via successful listings, apart from the intensified regulation by SEBI for maintaining high standards. The recent and upcoming offerings on trackers include cybersecurity, logistics, ayurveda and nutraceuticals, electronics, and specialized engineering, among others – more diverse sectors than ever before.

​The larger context: a revival in the global IPO market The SME sector is not evolving in isolation. In the global arena, 2025 witnessed 1,293 IPOs worth US$171.8 billion in terms of raising capital – an increase of 39% compared to the previous year, despite relatively unchanged transaction volume, reflecting a general trend towards a better quality of listings amid tough times. India emerged as the world’s leading country in the number of IPO transactions in 2025, second only to the US and Hong Kong by total amounts of money raised – thus indicating the increasing importance of the Indian primary market, including the SME market, for the entire international market of stock listings. At a more general level, the global small cap stocks are expected to be re-rated in 2026 owing to AI-led improvements in productivity, economic recovery, and M&amp;A activity, though the current environment “favors selective positioning... as inefficiencies generate opportunities but require caution.” The bottom line The year 2026 represents a watershed moment for Indian SMEs IPO space. With the 'list now, explain later' approach coming to an end, the new system will favor profitable, transparent, and well-run firms, increasing the stakes for issuance as well as retail investing in them. Fewer, larger, and higher quality offerings; longer lock-in periods for the promoters; more disciplined retail investments – a market that trades depth for breadth.​

SEBI introduced stricter regulatory norms for the SME IPO ecosystem

What Trends Are Shaping the SME IPO Market in 2026?

​<a target="_blank" href="https://www.planify.in/research-report/power-exchange-unlisted-share-price/">Power Exchange India Limited (PXIL)</a>, India's second operational power electronic marketplace regulated by the CERC, is gaining significant attention in the unlisted market with an implied valuation of about ₹3,100 crore. Promoted by major players like NSE Investments, NCDEX, and Power Finance Corporation, the company runs a digital transaction platform where electricity and energy certificates are traded. This marketplace helps distribution companies (DISCOMs), large industrial units, independent power producers, and open-access consumers manage risk, improve short-term energy procurement, and achieve price discovery transparently and in real time. PXIL’s operations center around a business model that relies on volume-based transaction fees. Unlike stock exchanges that charge based on trade value, PXIL imposes a flat transaction fee linked strictly to physical volume. This fee is typically set at ₹0.02 per kWh from both buyers and sellers for electricity and a fee of ₹10 per unit for Renewable Energy Certificates (RECs) and Energy Saving Certificates (ESCerts). PXIL diversifies its core transactional income with recurring revenue from new member registrations, annual subscription fees, software connectivity charges, and interest income from cash reserves. The exchange serves as a central counterparty that collects upfront margins and guarantees settlement, which eliminates counterparty credit risk. This structure provides significant operating leverage; once its digital platform infrastructure is established, incoming trading volumes contribute directly to profits with minimal additional costs. Financially, the company has had a steady, albeit modest, year. Revenue from operations grew by a solid 12.1%, reaching ₹86.4 Cr in FY26 compared to ₹77.1 Cr in FY25. However, total income growth was a bit softer at 8.1%, climbing to ₹100.4 Cr in FY26 from ₹92.9 Cr in FY25. This slowdown was due to a decline in interest income from the company’s large cash reserves, while other income fell by 11.4% to ₹14.1 Cr. On the expense side, rising employee costs and taxes limited overall earnings growth, keeping total expenses at ₹50.7 Cr. As a result, Profit After Tax (PAT) showed a modest rise of 7.2%, reaching ₹37.0 Cr in FY26, up from ₹34.5 Cr in the previous fiscal year. This increase pushed its Earnings Per Share (EPS) up by 7.3% to ₹6.34, allowing the company to raise its dividend per share from ₹1.70 to ₹2.00. The primary investment opportunity enhancing this price tag is the upcoming implementation of market coupling under India's power sector reforms. This regulatory change aims to centralize price discovery into a single national pool across all platforms, effectively breaking down the near-monopoly of Indian Energy Exchange (IEX). While the ₹3,100 crore valuation suggests a high multiple compared to its current trailing earnings (trading at a P/E of roughly 80x to 90x based on the FY26 EPS of ₹6.34), its backing by institutions, debt-free balance sheet, strong cash reserves, and the significant structural tailwinds of growing power demand in India make it an attractive high-growth option for long-term pre-IPO investors willing to navigate the regulatory changes.

Power Exchange India Limited (PXIL): FY26 Financial Review and Business Model Breakdown

​<a target="_blank" href="https://www.planify.in/research-report/renfra-energy-india-limited/">Renfra Energy Limited</a> (CIN: U74999TN2017PTC119232) is a 2017-founded unlisted company incorporated in Chennai, Tamil Nadu. The company has successfully filed its Draft Red Herring Prospectus (DRHP). Renfra brands itself as a clean energy powerhouse with core competencies in Solar PV EPC, Wind Energy Solutions, Operation and Maintenance (O&amp;M) and Commercial and Industrial (C&amp;I) segments. The Public Issue comprises a Fresh Issue of up to ₹430.00 Crores and an Offer for Sale (OFS) of up to 47,94,800 Equity Shares, which is proposed to be listed on both the National Stock Exchange of India (NSE) and BSE Limited. On the financial side ReNfra EnerGy has delivered an explosive profitability unlock with its move to a high-margin Material+Labour contract model that managed to grow its margins from 3% to 13%. The company recorded a strong growth of 104% Year-on-Year with total revenues of ₹1,040 Crores in FY26. Its Profit After Tax (PAT) has been on a steady upward trajectory over the last four fiscal years, growing from ₹28 Crores in FY23 to ₹45 Crores in FY24, ₹94 Crores in FY25 and over ₹150 Crores in FY26, which is a 60% YoY growth in the latest fiscal year. In addition, the company has a very decent and strong balance sheet with a low gearing ratio of below 0.5x. The company's mid to long term earnings visibility is well supported by a strong and active order book of over ₹900 Crores. This execution pipeline is further bolstered with a major ₹3,050 Crore Memorandum of Understanding (MOU) inked with the Government of Tamil Nadu. ReNfra EnerGy is a next-growth catalyst with plans to aggressively scale up its execution capacity from 300 MW to 13 GW by FY27. The growth will be propelled by a strategic push into the neighboring states of Karnataka and Andhra Pradesh, which is anticipated to generate a revenue CAGR of 73% over the next four years.

Renfra Energy Files DRHP for Strategic IPO to Fund Massive Green Expansion

Financial Performance (FY26 Provisional numbers vs FY25):The total revenue of <a target="_blank" href="https://www.planify.in/research-report/quality-enviro/">Quality Enviro Engineers Limited</a> has been increasing consistently in FY26, with an increase of total revenue by 22.3%, with its value being ₹62.99 crore as compared to ₹51.52 crore in FY25. This was mainly due to efficient project execution along with expanding markets. EBITDA has also been increasing to ₹7.84 crore in FY26 from ₹6.41 crore in FY25, while the EBITDA margin has remained constant at 12.45%. Similarly, PAT has increased significantly from ₹3.93 crore in FY25 to ₹5.05 crore in FY26. The growth rate for revenue, EBITDA, and PAT has been consistent for the past two financial years, which is 22.3%, 22.3%, and 28.5%, respectively. Operational Metrics (FY26 Provisional numbers vs FY25) During FY26, Quality Enviro Engineers Limited increased its unit production to 204 from the previous fiscal year, thereby increasing the manufacturing capacity of the company by 8.5% on a year-over-year basis. The manufacturing capacity of the company stands at 320 units, implying a spare manufacturing capacity of 116 units. The company has scaled its operation on a significant note by increasing its employee strength by 86%, wherein it increased its employee strength to 156 from 84 in the FY26 fiscal year. It has been able to manage its liabilities and assets for its operational growth, whereby the total borrowings are approximately ₹20 crore against the fixed deposits of ₹13 crore. To fund further scaling, a banking limit enhancement of +₹10 crore is currently planned and in process. Key Project Executions &amp; Order Book (FY26 Provisional numbers) Execution of projects as well as pipeline was strong during FY26 with the order book being at more than ₹14 crore and the bidding pipeline close to ₹40 crores. The main projects delivered during FY26 include delivery of 7 road sweeping machines worth ₹11.00 crore for Dhanbad Municipal Corporation and delivery of solar panel batteries &amp; equipment worth ₹7.00 crore to RCRS Innovations Ltd that marks our strategic entry into the renewables space. Other important executions include fog cannon and desilting machine worth ₹5.70 crore in Uttar Pradesh, installation and commissioning worth ₹5.30 crore for TPS Infra, anti-smog gun, jetting machine &amp; sprinklers worth ₹4.90 crore in Delhi. The ongoing projects in the order book include Delhi MCD (12 anti-smog guns worth ₹7.20 crore), Chandigarh (5 anti-smog guns worth ₹2.10 crore), and Belagavi (10 hopper tippers worth ₹1.30 crore). Strategic Developments &amp; Outlook Quality Enviro Engineers Ltd. has remained a leading engineering firm specializing in infrastructural and sanitation related projects. The geographical presence of the firm has expanded to include Delhi, Chandigarh, Haryana, Uttar Pradesh, Manipur, and Vishakhapatnam. In addition to growing its main areas of specialization, which include anti-smog guns, sanitation equipment, jetting machines, and sprinklers, the firm has ventured into making new products including fire rescue vehicles and hopper tippers. Looking forward, the management has set revenue growth guidance of 40-50% year on year (YoY) for FY27 due to a stronger order pipeline and efficient fixed costs absorption. This comes from the commissioning of a new plant by the company.

Quality Enviro - FY26 Performance

How SME IPOs transformed Business Owners and benefited India India's SME IPO market has proved itself to be one of the major disruptive factors in the economic fabric of the country. After the inception of BSE SME in 2012 and NSE Emerge in 2012, more than 1,440 companies have tapped the public equity markets, thereby raising a total capital of more than ₹37,500 Crores and valuing themselves more than ₹4,37,000 Crores. 82% of the total amount raised in last 5 years (~₹31,000 crore).In just the year 2025, the total value of money mobilised by India's SME IPOs was more than ₹12,000 Crores. Till date in late June 2026, more than 60+ companies have raised money from the SME IPOs that have either completed their bidding or listing process. The key point about the SME IPO market is that there has been a structural change in the SME IPO market. The market has moved from speculation to the fundamental phase. Current SME IPO Status (June 2026) The primary market of SME stocks continues to stay extremely busy as June 2026 nears its end, with four key players being seen actively involved at the moment. The largest among them in terms of issue size would be Sri Priyanka Geo Commex IPO with ₹94.51 Cr expected to be raised through its listing with the price band of ₹207 - ₹212 and initial subscription of 0.31x. Next on that list come IC Electricals Company IPO (₹47.91 Cr) and Crazy Snacks IPO (₹31.47 Cr) with the current subscription of 0.16x and price band of ₹39 - ₹42. Dhanwel Hybrid Seeds IPO, with a target raising of ₹26.73 Cr rounds off that list. With lot sizes from 600 to 3,000 shares needed in order to subscribe, these listings will require the average ticket size of around ₹1,18,000 to ₹1,27,000 per lot. <div style="margin-left:0pt"><table class="se-table-layout-auto se-table-size-auto"><tbody><tr><td>Name</td><td>Bidding Dates</td><td>Price Range</td><td>Lot Size</td><td>Investment/Lot</td><td>IPO Size</td></tr><tr><td class="se-table-selected-cell">Sri Priyanka Geo Commex IPO</td><td>24 Jun'26 - 29 Jun'26</td><td>₹207 - ₹212</td><td>600</td><td>₹1,27,200</td><td>₹94.51 Cr</td></tr><tr><td>Dhanwel Hybrid Seeds IPO</td><td>24 Jun'26 - 29 Jun'26</td><td>₹95 - ₹99</td><td>1200</td><td>₹1,18,800</td><td>₹26.73 Cr</td></tr><tr><td>IC Electricals Company IPO</td><td>25 Jun'26 - 30 Jun'26</td><td>₹94 - ₹99</td><td>1200</td><td>₹1,18,800</td><td>₹47.91 Cr</td></tr><tr><td>Crazy Snacks IPO</td><td>25 Jun'26 - 30 Jun'26</td><td>₹39 - ₹42</td><td>3000</td><td>₹1,26,000</td><td>₹31.47 Cr</td></tr></tbody></table></div> Listed SME Companies in the First Half of 2026: The list, in all, covers 60+ listed SME Companies by 2026, indicating significant activity in the primary market for start-ups. Top performers within the sector include:<ul><li style="font-size:15px;color:#000000;background-color:transparent">High-End Tech &amp; Electronics Industry Companies such as Vivid Electromech (which has been valued at a premium price of up to ₹555) and Liotech Industries (with premium fixed prices of ₹321) are indicative of high institutional and retail support. Within the SME segment, the industrial electronics and automation industry tends to have a higher premium because of government initiatives towards domestic production and infrastructural development.</li><li style="font-size:15px;color:#000000;background-color:transparent">Resilient Biotech &amp; Healthcare Sector Rapid successive listing by healthcare-associated companies such as Avience Biomedicals, Q-line Biotech, and BIO Medica Laboratories constitutes a notable growth area. Such companies tend to list very well on listing day owing to the efficiency of the business model which allows for a quick margin expansion due to the capital infusion.</li><li style="font-size:15px;color:#000000;background-color:transparent">Traditional B2C Consumer Businesses Established brands in the consumer goods industry such as CLAY Craft India Limited (domestic pottery/crockery) derive an advantage from brand recognition. The business models of such companies tend to do well in listings due to their simplicity for retail investors.</li></ul><div style="margin-left:0pt"><table><tbody><tr><td>Company Name</td><td>Price Band (₹)</td><td>Min. Investment Requirement (₹)</td><td>IPO Timeline</td></tr><tr><td>Avience Biomedicals Limited</td><td>196.00 - 208.00</td><td>2,49,600</td><td>Jun 18 – Jun 22, 2026</td></tr><tr><td>Liotech Industries Limited</td><td>321.00 (Fixed)</td><td>2,56,800</td><td>Jun 17 – Jun 19, 2026</td></tr><tr><td>CLAY Craft India Limited</td><td>193.00 - 203.00</td><td>2,43,600</td><td>Jun 17 – Jun 19, 2026</td></tr><tr><td>Q-line Biotech Limited</td><td>326.00 - 343.00</td><td>2,74,400</td><td>May 21 – May 25, 2026</td></tr><tr><td>Simca Advertising Limited</td><td>174.00 - 183.00</td><td>2,19,600</td><td>May 08 – May 12, 2026</td></tr><tr><td>Vivid Electromech Limited</td><td>528.00 - 555.00</td><td>2,66,400</td><td>Mar 25 – Mar 30, 2026</td></tr></tbody></table></div>

The primary market of SME stocks continues to stay extremely busy as June 2026 nears its end

Upcoming SME IPOs in 2026: Sectors, Calendar, and What to Track Before Investing

Details of the Issue to the Public<ul type="disc"><li>Fresh Issue- Up to 270,000,000 Equity Shares of face value of ₹10 each for cash</li><li>Listing- <a target="_blank" href="https://www.planify.in/research-report/national-stock-exchange/">NSE</a> and BSE</li></ul>Objective of the Issue<ul type="disc"><li>Prepayment, in full or in part, of certain outstanding borrowings availed by the Material Subsidiary, namely, RJIL. An aggregate amount of up to ₹275,000 million from the Net Proceeds is proposed to be utilized towards prepayment, in full or in part, of the principal amount outstandin of certain borrowings availed by Reliance Jio Infocomm Limited (RJJL).</li><li>General corporate purposes, to be finalised upon the Issue determination of listed price. It includes purpose like- strategic initiatives, funding organic and inorganic growth opportunities, capital expenditure.</li></ul>Business Model Jio is built on core pillars of proprietary technology and phygital distribution capabilities enabling us to provide seamless connectivity and digital services to our customers. Its product portfolio includes multiple products offered to business and consumers.Offerings to Consumers –<ul type="disc"><li>Mobile and fixed digital connectivity, such as wireless and fixed broadband</li><li>Digital services across entertainment, cloud gaming, cloud compute, cloud PC and storage, and smart home solutions through our own and third-party products</li><li>Access to next generation AI-based products, such as AI assistants.</li></ul>Offerings to Business –<ul type="disc"><li>Enterprise-grade broadband and leased line-based connectivity</li><li>Digital services such as cloud, productivity, unified communications platform, IoT, Managed Wi-Fi; private 5G and security solutions to digitise operations through our own and third-party products</li><li>End-to-end managed information and communication services</li><li>Access to next generation AI-based products, such as AI enterprise suite products.</li></ul>Market Share Since our launch in 2016, JIO has fundamentally reshaped digital connectivity for India, and created an all-internet protocol-led 4G network for consumers to seamlessly access digital services. In Fiscal 2026, around 60% of India’s wireless data traffic was on our network, and as of March 31, 2026, we were the largest digital connectivity player, followed by Bharti Airtel40 at 35.13%, Vodafone Idea at 12.65%, and BSNL at 2.24%. Jio has successfully transformed India’s digital landscape over the past decade. Before Jio entered in the market in FY2016 average download speed was around 2.5 Mbps and one GB of data cost ₹228.0 thus average data usage per user was also just 0.2 GB per month. Now, in FY26 download speed reached to over 68 Mbps, data price have&nbsp;crashed to highly affordable ₹7.9 per GB, and average monthly usage per customer has expanded exponentially to 25.7 GB. Jio has total customer base of 524.4 million, making it market leader in both mobile and broadband, where it is 1.4 times the size of the Bharti Airtel. This massive user base show deep engagement, with average per capita data consumption of 42.3 GB and 361.6 million monthly active users across its suite of applications. Financial Performance Analysis Financial Metrics: <table class="se-table-layout-fixed"><thead><tr><td>Particulars</td><td>2024 (Rs Cr)</td><td>2025 (Rs Cr)</td><td>2026 (Rs Cr)</td></tr></thead><tbody><tr><td>Total Revenue</td><td>1,10,175.40</td><td>1,29,333.00</td><td>1,49,759.10</td></tr><tr><td>EBITDA</td><td>54,958.70</td><td>64,170.00</td><td>76,255.40</td></tr><tr><td>EBIT</td><td>32,855.60</td><td>40,032.40</td><td>49,006.50</td></tr><tr><td>Net Profit</td><td>21,434.00</td><td>26,120.30</td><td>30,052.70</td></tr><tr><td>Capex</td><td>53,606.70</td><td>44,349.40</td><td>34,255.30</td></tr><tr><td>Total Assets</td><td>5,39,580.40</td><td>5,81,233.80</td><td>6,15,594.00</td></tr><tr><td>Total Debt</td><td>67,110.90</td><td>85,695.80</td><td>84,668.60</td></tr><tr><td>Total Equity</td><td>2,79,421.70</td><td>3,06,181.20</td><td>3,37,076.20</td></tr><tr><td>Free Cashflow</td><td>4,054.90</td><td>23,806.30</td><td>43,301.00</td></tr></tbody></table> Key Financial Ratios: <table class="se-table-layout-fixed"><thead><tr><td>Particulars</td><td>2024</td><td>2025</td><td>2026</td></tr></thead><tbody><tr><td>EBITDA Margin</td><td>49.88%</td><td>49.62%</td><td>50.92%</td></tr><tr><td>Net Income Margin</td><td>19.45%</td><td>20.20%</td><td>20.07%</td></tr><tr><td>Return on Capital Employed (ROCE)</td><td>9.48%</td><td>10.22%</td><td>11.62%</td></tr><tr><td>Return on Asset (ROA)</td><td>3.97%</td><td>4.49%</td><td>4.88%</td></tr><tr><td>Return on Equity (ROE)</td><td>7.67%</td><td>8.53%</td><td>8.92%</td></tr><tr><td>Fixed Asset Turnover Ratio</td><td>—</td><td>0.29</td><td>0.33</td></tr><tr><td>Capex/Revenue</td><td>0.49</td><td>0.34</td><td>0.23</td></tr><tr><td><div>Debt/Equity</div></td><td><div>0.24</div></td><td><div>0.27</div></td><td><div>0.25</div></td></tr><tr><td><div>Interest Coverage Ratio </div></td><td><div>8.11</div></td><td><div>8.16 </div></td><td><div>5.66 </div></td></tr></tbody></table> Performance Indicator: <table class="se-table-layout-fixed"><tbody><tr><td><div>Particulars</div></td><td>2024</td><td>2025</td><td>2026</td></tr><tr><td>Total Consumer (in Rs Cr)</td><td>52.4</td><td>48.8</td><td>48.1</td></tr><tr><td>ARPU</td><td>181.7</td><td>206.2</td><td>214</td></tr><tr><td>Monthly data consumption</td><td>28.7</td><td>33.6</td><td>42.3</td></tr><tr><td>Monthly chur rate</td><td>1.52%</td><td>1.81%</td><td>1.67%  </td></tr></tbody></table><ul type="disc"><li>Jio’s Average Revenue Per Customer (ARPU) has increased from Rs. 181 in FY24 to Rs. 214 in FY26. In July 2024 Jio has raised its tariffs by 12-25% across different plans which added to the growth of ARPU. Moreover, in the same time period monthly data consumption for Jio’s customer also rise from 28.7 GB to 42.3 GB.</li><li>Jio demonstrated robust financial growth during FY24- FY26, with revenue increasing Rs. 110,175.4 Cr. to Rs. 149,759.1 Cr. reflecting sustainable expansion in its telecom and digital service business. Net Profit has also increased from Rs. 21,434 Cr. to 30,052.7. With increase in the size of the business Jio has efficiently able to maintain its margin. It has strong EBITDA margin of around 50% and Net Profit margin at around 20%.</li><li>Capital Expenditure has declined significantly from Rs. 53,606.7 Cr. in FY24 to Rs. 34,255.3 Cr. in FY25, resulting in reduction of Capex-Revenue ratio. The trend may suggest company has largely completed its major network and spectrum investments and subsequent required lower incremental investment. Reduction in capex also contributed to increase in Free Cashflow generation. FCF increased from Rs. 4054.9 Cr. in FY24 to Rs. 43301 Cr. in FY26.</li><li>Total Debt level for the company has significantly increased from Rs. 67,110.9 Cr. in FY24 to Rs. 84,668.6 Cr. in FY25, leading to increase in Debt/Equity ratio and decline in interest coverage ratio. Company aim to use the net money raised through the IPO in repayment of debt.</li></ul>

Fresh Capital Strategy: Financial Analysis of Jio’s DRHP

Pre-IPO investing is what happens before that moment. It's buying shares of a company that's private, not yet listed, and is either planning to go public or simply building value in the private market.

Pre-IPO vs. IPO: Which is Better for Investors in 2026?

On June 17, 2026, the National Stock Exchange of India did something it first attempted a decade ago: it formally filed its Draft Red Herring Prospectus with SEBI. One document. Years in the making. And potentially the single biggest IPO India has ever seen. The <a target="_blank" href="https://www.planify.in/research-report/national-stock-exchange/">NSE IPO</a> isn't just another large listing. It's the exchange that hosts the Nifty 50, clears the bulk of India's derivatives trades, and processes crores of transactions every single day going public.&nbsp; A Decade of Waiting NSE first tried this in December 2016, filing draft papers to raise ₹10,000 crore. Then the co-location scam surfaced. SEBI froze the process. Investigations dragged. The exchange upgraded its algorithmic trading infrastructure, rebuilt its compliance architecture, and ultimately paid a ₹1,800 crore fine to resolve the issue. The pivotal moment occurred in January 2026 when SEBI issued its official No-Objection Certificate, which is a prerequisite for any market infrastructure institution to submit an IPO application. On February 6, the plan was approved by the NSE board. The DRHP followed on June 17. That's the condensed version of a nine-year journey. What the DRHP Actually Says The NSE IPO is structured entirely as an offer for sale. The exchange itself isn't issuing a single new share or raising fresh capital; every rupee from this issue goes to selling shareholders. NSE has no need for the money; it runs an asset-light, cash-generating model that speaks for itself in the financials. The OFS will consist of up to 14.89 crore equity shares of face value of ₹1 each, translating into about 6% dilution in the exchange’s total equity. At present valuation estimates, that puts the issue size in the range of ₹25,000 to ₹30,000 crore comfortably ahead of Hyundai Motor India's ₹27,870 crore issue in 2024, which is the record at the moment. The State Bank of India is the largest selling shareholder, selling up to 2.48 crore shares. Other sellers are MS Strategic (Mauritius), Bank of Baroda, GIC, New India Assurance, National Insurance, and United India Insurance. LIC has a stake but is not selling in this round The IPO will be managed by a syndicate of 20 book-running lead managers, including Kotak Mahindra Capital, JM Financial, Morgan Stanley, JP Morgan, HSBC, Citi, SBI Capital Markets, Axis Capital, and ICICI Securities. Largest ever bank syndicate put together for an Indian IPO. The Financial Picture NSE's revenue trajectory tells the story of what this business is. Total income increased to ₹19,177 crore in <a target="_blank" href="https://www.planify.in/article/nse-announced-its-fy25-results/">FY25</a> from ₹16,352 crore in <a target="_blank" href="https://www.planify.in/article/nse-released-its-financials-for-q3-fy24/">FY24</a> before declining to ₹18,713 crore in FY26. Revenue from operations was ₹16,601 crore in FY26, a decline of 3.1% from ₹17,141 crore in FY25. Profit after tax came in at ₹10,302 crore for FY26, a 15.5% decline from ₹12,188 crore in FY25. The DRHP attributes this to softer transaction activity, higher compliance-related expenses, and some one-time regulatory items. In Q4 FY26, however, the exchange bounced back, reporting a PAT of ₹2,871 crore on total income of ₹5,360 crore, with transaction charge revenue surging 39% year-on-year. These aren't the numbers of a struggling exchange. These are the numbers of a near-monopoly that had an off-year. Why NSE's Market Position Justifies the Valuation NSE holds between 93 and 98 percent of India's derivatives market by volume, making it the world's largest derivatives exchange on that metric. In cash equities, its share runs between 85 and 90 percent. Every trade placed on Zerodha, Groww, or any other platform almost certainly routes through NSE's infrastructure. Every Nifty 50 SIP, every F&amp;O contract, and every index data feed is all revenue. At an implied market capitalization of ₹5 lakh crore, the valuation reflects that dominance. NSE also notably has no identifiable promoter; it's a widely held, institutionally governed exchange, which adds a layer of governance credibility that most large IPOs can't claim. NSE Unlisted Shares: What the Market Was Already Pricing In The NSE unlisted shares market had been tracking this story for months before the DRHP was filed. <a target="_blank" href="https://www.planify.in/research-report/national-stock-exchange/">NSE share price</a> in the unlisted market was trading in the range of ₹1,950 to ₹2,050 per share ahead of the filing, implying a market capitalization already close to ₹5 lakh crore. That's significant, because it tells you how much optimism is already baked into the private market. Analysts who track large IPOs have noted that historically, major listings have been priced at a 15 to 20 percent discount to prevailing unlisted levels designed to generate listing gains and sustain retail participation. If that pattern holds here, the IPO price band could land meaningfully below current NSE unlisted shares' trading levels, which would make the math interesting for investors who bought in early versus those entering at the public issue price. For pre-IPO investors who've been holding <a target="_blank" href="https://www.planify.in/research-report/national-stock-exchange/">NSE share price</a> exposure through unlisted market platforms, the DRHP filing is the first concrete confirmation that an exit is now on the horizon, not a rumor. SEBI will now review the document and may seek clarifications or revisions before issuing its observations. Once those observations are incorporated, NSE will file the red herring prospectus with the price band disclosed. It will then open for subscription for 3-5 working days and then go for allotment, refunds, and listing on BSE. NSE CEO Ashishkumar Chauhan had earlier indicated a timeline of seven to eight months from NOC to listing. The NOC came in January 2026. The most mentioned target is a market debut in late 2026 as per SEBI timelines and broader market conditions. Conclusion The NSE IPO is more than a capital market transaction. It brings India's most critical trading infrastructure under public ownership and scrutiny. It will force quarterly reporting, public governance disclosures, and analyst coverage of the entity that most Indian investors interact with every single day without realizing it. It also signals something broader: that India's primary market, which saw relatively muted mainboard activity in the first half of 2026, is entering a more active phase. If NSE lists, it doesn't just add one name to the exchange; it sets the tone for every large IPO that follows in the coming year. For investors, HNIs, and institutions watching this space, the DRHP is the starting gun. The race to India's biggest listing ever has officially begun.

The NSE IPO isn't just another large listing. It's the exchange that hosts the Nifty 50, clears the bulk of India's derivatives trades, and processes crores of transactions every single day going public.

NSE Files for ₹30,000 Crore IPO, Set to Script India's Biggest Listing Ever

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