Investment bankers have asked Sebi to relax the rule on changing the size of an IPO. As per a Mint report on 3 November 2026, there is no final decision yet. The Sebi IPO issue size rule today forces a fresh DRHP if the fresh issue changes by more than 20%.
A DRHP is the draft offer document Sebi reviews before an IPO. Filing it again means more weeks of waiting and extra cost.
What bankers have asked for
The Association of Investment Bankers of India (AIBI) has made a representation to Sebi. It wants the 20% limit for fresh issues raised to 50%. That would match the limit for an offer for sale (OFS), where existing shareholders sell their shares.
Mint quotes two people who know of the talks. One said the matter was discussed with Sebi 15 to 20 days ago. Neither person was named. Sebi and AIBI did not reply to Mint's queries.
The bankers' argument is simple. Prices and investor appetite can change between filing and launch. A 20% window can be too thin when that happens.
What the rule is right now
Sebi has already eased the limit for now. It allows a change of up to 50% in the fresh issue, and this runs until March 2027. We covered the extension in our earlier post on the Sebi relaxation.
There are conditions. The main object of the issue must stay the same. The lead manager must certify that the offer follows Sebi rules.
The bankers want this flexibility to become a permanent part of the rules. Until then, issuers depend on a temporary relief.
| Type of issue | Usual limit | Now, until March 2027 |
|---|---|---|
| Fresh issue | 20% | 50% |
| Offer for sale | 50% | 50% |
Which IPOs have changed size
Mint lists a few recent cases. Oravel Stays, the parent of Oyo, cut its fresh issue to ₹3,350 crore from ₹6,650 crore. This was in an addendum filed with Sebi on 26 October.
Hero Motors trimmed its IPO to ₹1,000 crore from ₹1,200 crore in August. Fractal Analytics cut its issue to ₹2,834 crore from ₹4,900 crore in February.
Mint also names PhonePe, Carlsberg India, Avaada Electro and Paras Healthcare. Their Sebi approvals were originally expected to be used before April 2027.
A word of caution from the market
Pranav Haldea of Prime Database told Mint that some relaxation is justified. He added that it should be calibrated. In his view it should not let issuers change their plans materially without proper reasons and disclosure.
What our data shows
Many large issues are waiting in the pipeline. You can see which companies are yet to launch on our upcoming mainboard IPO page. A looser rule would let those companies resize without a fresh DRHP.
What happens next
Sebi has not said whether it will take up the proposal. Any change in the rule would need to be announced by the regulator. The present 50% relief stays in place until March 2027. Read the original Mint report for the full details.
