SEBI pushes back IPO size‑revision deadline The Securities and Exchange Board of India (SEBI) has announced that the temporary relaxation allowing companies to modify the size of their fresh‑issue component in an IPO will now remain in force until **31 March 2027**. The decision was communicated to the Association of Investment Bankers of India (AIBI) on 12 October.
What the relaxation permits Under the extended framework, issuers may **increase or decrease** the fresh‑issue portion of an IPO by **up to 50 %** without the need to file a new draft offer document. The change is subject to a set of conditions designed to keep the primary purpose of the IPO unchanged and to ensure that investors receive clear, timely information.
Compliance requirements * The lead book‑running lead manager (BRLM) must certify that the revised issue size complies with SEBI’s rules. * The draft red‑herring prospectus (DRHP) must be updated to reflect the new size. * An addendum to the offer document must disclose the alteration to investors. * Issuers must provide a justification for the revision, and the fundamental objective of the IPO cannot be altered.
Why the extension matters now SEBI originally set a **30 September 2026** cut‑off in early April, citing heightened market uncertainty stemming from geopolitical tensions in West Asia. By extending the relief, the regulator acknowledges ongoing volatility that can affect investor sentiment and the capital‑raising appetite of companies.
Potential impact on the market The flexibility may encourage more firms to proceed with IPOs, knowing they can adjust the capital they seek without restarting the regulatory filing process. At the same time, the mandatory disclosures and BRLM certification aim to protect investors from opaque or abrupt changes.
Looking ahead Companies planning IPOs should review the updated conditions and coordinate closely with their lead managers to ensure compliance. Market participants will be watching how issuers utilise the 50 % ceiling and whether the extension leads to a measurable uptick in IPO activity.
--- *The information above is based on SEBI’s communication to AIBI dated 12 October. No additional sources were provided.*