SEBI allows IPO issuers to revise fresh issue size by up to 50% until March 31, 2027

Key facts

• The Securities and Exchange Board of India (SEBI) extended the relaxation allowing IPO issuers to increase or decrease the fresh issue portion of their issues by up to 50% till March 31, 2027.
• The relaxation, communicated to the Association of Investment Bankers of India (AIBI), extends the earlier deadline of September 30, 2026 that was introduced amid market volatility due to the West Asia conflict.
• All issuers whose IPOs open on or before March 31, 2027 are eligible for this extension, which permits changes to fresh issue size without filing fresh draft documents.
• Book running lead managers can file revised offer documents only if the main objective of the issue remains unchanged and all relevant regulations are complied with.
• Bankers must conduct adequate due diligence, justify the revision, and issue a public addendum informing investors about the change in issue size.