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SEBI Extends IPO Flexibility to 2027
13 Oct
Summary
- Market regulator SEBI has extended the IPO issue-size relaxation deadline.
- Companies can now adjust issue size by 50% without fresh filings.
- This extended flexibility is now valid until March 31, 2027.
The Securities and Exchange Board of India (SEBI) has extended the deadline for its policy allowing greater flexibility in IPO issue sizes. The market regulator has pushed the date to March 31, 2027, as indicated in a communication to the Association of Investment Bankers of India (AIBI).
This policy, initially introduced in April, permits companies to revise their fresh issue size by up to 50%. Such adjustments can be made without the need for filing a fresh draft red herring prospectus (DRHP). This significant increase in flexibility was originally set to expire on September 30, 2026.
Prior to this relaxation, any alteration to the IPO issue size exceeding 20% necessitated the submission of a new draft offer document. The extended deadline provides companies with an extended period of adaptable capital-raising mechanisms.
