Summary of this article
Sebi extends the IPO issue size relaxation deadline to March 31, 2027
Companies can change fresh issue sizes by up to 50 per cent without fresh filings
Nearly 250 companies plan to raise Rs 4.65 lakh crore through public issues
The Securities and Exchange Board of India (Sebi) has extended by six months the relaxation allowing companies to increase or decrease the size of the fresh issue in an initial public offering (IPO) by up to 50 per cent without filing fresh offer documents. The revised deadline applies to IPOs opening on or before March 31, 2027. The earlier deadline was September 30, 2026.
The extension follows representations from the Association of Investment Bankers of India (AIBI), which flagged challenges faced by companies and merchant bankers when changing issue sizes amid volatile market conditions.
Earlier, companies had to file fresh draft red herring prospectus (DRHP) if they wanted to change the issue size by more than 20 per cent. Sebi introduced the relaxation in April 2026 amid market volatility caused by tensions in West Asia, allowing companies to revise their fundraising plans without going through the filing process again.
However, companies can use this relaxation only if the main objective of the IPO remains unchanged. They must explain why they want to change the issue size and meet Sebi's regulatory requirements.
Book-running lead managers must update the DRHP to reflect the revised issue size and make the changes public through an addendum to the offer document. They must also carry out due diligence and ensure that the revised issue meets Sebi's rules.
The relaxation applies only to the fresh issue, where a company sells new shares to raise money. Companies cannot use it to make unlimited changes to the IPO's structure or main objective.
The extension allows companies to adjust their fundraising plans as market conditions change, without having to restart the filing process, while continuing to meet Sebi's rules.
The extension comes as India's IPO pipeline remains strong, with nearly 250 companies looking to raise a combined Rs 4.65 lakh crore through public issues, according to a Reuters report citing PRIME Database.
Some of the big names planning IPOs include Mukesh Ambani's widely anticipated Jio Platforms, quick-commerce platform Zepto, Oravel Stays, the parent company of OYO, and PhonePe, a digital payments and financial services platform. The extension gives companies more flexibility to change their IPO size as market conditions change, without filing fresh offer documents.
