SEBI extends IPO issue size relaxation until March 2027
Companies can increase or reduce fresh issue size by up to 50% without filing fresh draft papers, offering greater flexibility in IPO fundraising
- Oct 14, 2026,
- Updated Oct 14, 2026 4:03 PM IST
The Securities and Exchange Board of India (SEBI) has extended its relaxation allowing companies to revise the fresh issue size of their initial public offerings (IPOs) by up to 50% without filing fresh draft offer documents. The concession will remain available for IPOs opening on or before March 31, 2027, the Association of Investment Bankers of India (AIBI) said.
The extension gives companies more flexibility to adjust their fundraising plans in response to changing business requirements and market conditions without restarting the draft filing process. The earlier relaxation was valid until September 30, 2026.
Under the regular framework, a change of more than 20% in the estimated fresh issue size requires a company to file fresh draft offer documents. The relaxation allows revisions of up to 50%, subject to specified conditions.
The move comes as companies and merchant bankers seek greater flexibility in determining IPO sizes amid changing market conditions. SEBI first introduced the concession in April 2026 following market uncertainty linked to the West Asia conflict.
However, companies must retain the main objects of the issue and adequately justify any revision. Lead managers must conduct due diligence, update the relevant sections of the draft red herring prospectus and publicly disclose an addendum informing investors of the changes.
The relaxation applies only to the fresh issue component of an IPO, through which a company raises capital for its business. It does not cover the offer-for-sale component, under which existing shareholders sell their shares.
Mahavir Lunawat, founder of Pantomath Financial Services Group and chairman of AIBI, said IPO sizes may need to change with evolving business needs and market conditions. The relaxation, he said, reduces procedural hurdles and improves efficiency in the IPO process.
AIBI cited fundraising of ₹94,649 crore during the July–September quarter, comprising ₹90,482 crore raised through 69 mainboard IPOs and ₹4,167 crore through 92 SME IPOs. These figures represent total IPO proceeds and are not limited to fresh issues or funds directly attributable to the relaxation.
The latest extension is separate from SEBI’s earlier one-time extension of IPO observation letters. That measure allowed letters due to expire between April 1 and September 30, 2026, to remain valid until September 30, 2026. The current relaxation concerns revisions to fresh issue size and does not extend the validity of observation letters.
The Securities and Exchange Board of India (SEBI) has extended its relaxation allowing companies to revise the fresh issue size of their initial public offerings (IPOs) by up to 50% without filing fresh draft offer documents. The concession will remain available for IPOs opening on or before March 31, 2027, the Association of Investment Bankers of India (AIBI) said.
The extension gives companies more flexibility to adjust their fundraising plans in response to changing business requirements and market conditions without restarting the draft filing process. The earlier relaxation was valid until September 30, 2026.
Under the regular framework, a change of more than 20% in the estimated fresh issue size requires a company to file fresh draft offer documents. The relaxation allows revisions of up to 50%, subject to specified conditions.
The move comes as companies and merchant bankers seek greater flexibility in determining IPO sizes amid changing market conditions. SEBI first introduced the concession in April 2026 following market uncertainty linked to the West Asia conflict.
However, companies must retain the main objects of the issue and adequately justify any revision. Lead managers must conduct due diligence, update the relevant sections of the draft red herring prospectus and publicly disclose an addendum informing investors of the changes.
The relaxation applies only to the fresh issue component of an IPO, through which a company raises capital for its business. It does not cover the offer-for-sale component, under which existing shareholders sell their shares.
Mahavir Lunawat, founder of Pantomath Financial Services Group and chairman of AIBI, said IPO sizes may need to change with evolving business needs and market conditions. The relaxation, he said, reduces procedural hurdles and improves efficiency in the IPO process.
AIBI cited fundraising of ₹94,649 crore during the July–September quarter, comprising ₹90,482 crore raised through 69 mainboard IPOs and ₹4,167 crore through 92 SME IPOs. These figures represent total IPO proceeds and are not limited to fresh issues or funds directly attributable to the relaxation.
The latest extension is separate from SEBI’s earlier one-time extension of IPO observation letters. That measure allowed letters due to expire between April 1 and September 30, 2026, to remain valid until September 30, 2026. The current relaxation concerns revisions to fresh issue size and does not extend the validity of observation letters.