Sebi extends IPO size flexibility by six months to March 2027

Mumbai: The Securities and Exchange Board of India (Sebi) on Tuesday extended by six months the latitude, initially given to companies seeking a listing, to either increase or decrease the size of their issue without fresh regulatory approvals.

This allows such companies to negotiate market volatility without having to incur inflated compliance costs related to a listing. The relaxation will apply to initial public offerings (IPO) opening on or before March 31, 2027. Earlier, the exemption was available for prospectuses filed until September 30, 2026.

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Under the revised framework, lead managers can file an updated offer document reflecting changes in the issue size, provided the main object of the issue remains unchanged. The relevant sections of the DRH prospectus must be updated and an addendum made public.

They would also be required to ensure compliance with Sebi regulations, conduct due diligence and provide justification for the revision.

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AIBI in a statement said the relaxation followed its representations to Sebi on challenges faced by issuers and merchant bankers when changes to fresh issue sizes become necessary. The measure will improve efficiency in capital raising while allowing companies to respond to evolving business needs and market conditions.