Sebi extends relaxation to revise fresh issue size till March 2027

IPO-bound companies can increase or decrease fresh issue sizes by up to 50 per cent without filing fresh draft offer documents, provided the main objective of the issue remains unchanged

The Securities and Exchange Board of India (Sebi) has extended its relaxation allowing companies to revise the size of fresh issues until March 31, 2027, according to a communication sent to the Association of Investment Bankers of India (AIBI).

 

The earlier relaxation, announced due to the West Asia war, ended on September 30 and has now been extended.

 

IPO-bound companies will be permitted to increase or decrease the size of their fresh issues by up to 50 per cent without the need to file fresh draft offer documents with the market regulator.

 

In an email sent to the association on October 12, the regulator noted that the lead manager may file the updated offer document based on the revised issue size if there has been no change in the main objective of the issue. Additionally, the bankers will have to provide justification for the revisions.

 

“The above relaxation on change in fresh issue size shall be applicable for issues (IPO) opening on or before March 31, 2027,” the communication, seen by Business Standard, noted.

 

Further, merchant bankers will have to ensure that all appropriate changes to the issue are made public through an addendum and that the draft documents remain in compliance with the respective regulations.

 

Sources said the regulator’s decision follows issues and concerns raised by industry participants with the regulator, with the geopolitical situation continuing to remain strained.

 

September saw heightened activity in the primary market, with over 34 companies raising Rs 39,380 crore — accounting for 42 per cent of the total funds raised in the financial year 2026-27. As of September in FY27, a total of 78 companies had raised around Rs 94,276 crore.

 

It is noteworthy that the largest IPO of this financial year and the second-largest so far — the National Stock Exchange (NSE) — also debuted in September, contributing to the high figures for the month.