Sebi extends relaxation to revise fresh issue size till March 2027
Mumbai, Oct 13, 2026
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, introduced in view of the West Asia war, expired on September 30 and has now been extended. Under the relaxation, companies planning initial public offerings (IPOs) can increase or decrease the size of their fresh issue by up to 50 per cent without filing fresh draft offer documents with the market regulator.
In an email sent to AIBI on October 12, Sebi said the lead manager could file an updated offer document reflecting the revised issue size, provided there was no change in the issue's main objective. Merchant bankers will also have to provide justification for the revision.
“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, said. Merchant bankers will also have to ensure that all relevant changes are disclosed to the public through an addendum and that the offer documents remain compliant with the applicable regulations.
"The decision follows representations made by AIBI to Sebi highlighting the practical challenges faced by issuers and merchant bankers when revising the size of fresh issues during the IPO process. The relaxation is expected to provide greater flexibility in responding to evolving business requirements and market conditions, while reducing procedural hurdles and improving operational efficiency in the capital-raising process," said AIBI in a statement.
September saw heightened activity in the primary market, with more than 34 companies raising around ₹39,380 crore, accounting for 42 per cent of the total funds raised in 2026-27 (FY27). As of September, 78 companies had raised around ₹94,276 crore in FY27.
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, leading to the high figures in the month.
[The Business Standard]
