Summary of this article
Sebi is stipulating relaxations for IPO-bound firms amid West Asia conflict
Companies can tweak their IPO size up to 50 per cent without additional filing requirement
The Securities and Exchange Board of India (Sebi) is planning to allow companies to cut their initial public offering (IPO) size by as much as 50 per cent. The move aims at making it easier for companies to raise funds in the primary market amid waning investor interest due to the tensions in West Asia.
At present, Sebi rules require companies to refile their IPO draft documents if the planned fund-raising size changes by more than 20 per cent from the original amount estimated. With the change in rules, companies will now have to submit their revised offer size for Sebi’s approval and review which will be fast-tracked, according to a report by Reuters.
The ease in rules was considered as market participants are facing issues in mobilising funds and accessing the capital market due to ongoing tensions in West Asia, Sebi said.
The relief will apply to companies planning to raise funds through the primary market before September 30, 2026. Sebi will only grant permission to make the changes in offer size as stipulated, provided there is no change in the main objective of the issuance.
Last week, Sebi gave a one-time relief to companies whose deadlines for IPO were due to lapse between April and September 2026 to allow them time till September 30, 2026. Sebi has also relaxed the minimum public shareholding norms for IPO-bound companies, due to the ongoing US-Iran war.
The relaxation provided by Sebi so far focuses on companies whose issues have been delayed due to volatile market conditions amid the Iran war. Sebi has given approval to 143 companies to raise funds through IPOs cumulating to the amount of Rs. 1.75 lakh crore this year till April 2, 2026, according to data from Prime Database.
