SEBI extends IPO size-adjustment relief through March 2027
The Securities and Exchange Board of India has prolonged its temporary allowance for issuers to modify fresh issue sizes by up to 50% without filing new draft documents until March 31, 2027.
SEBI announced that the special permission allowing issuers to alter the size of fresh issues by up to 50% without preparing a new draft offer document will remain in force until March 31, 2027. The measure, first granted in response to the West Asia conflict and slated to end on September 30, has been extended after industry feedback. Lead managers can file an updated offer memorandum if the issue’s primary objective is unchanged, but must provide a rationale for the change and publish an addendum to ensure transparency.
Merchant bankers are required to keep the draft documents compliant with existing regulations. September saw a surge in primary-market activity, with 34 companies raising Rs 39,380 crore, representing 42% of FY 2026-27 funds, and a total of 78 firms securing about Rs 94,276 crore by that month, highlighted by the National Stock Exchange’s large IPO debut.
Why it matters
The extension gives Indian companies flexibility in IPO sizing, supporting market stability amid geopolitical uncertainty.
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