SEBI has extended its IPO size relaxation until 31 March 2027. Under it, a company can raise or cut the fresh issue in its IPO by up to 50% without filing a fresh draft offer document. The earlier deadline was 30 September 2026.
What exactly has SEBI extended?
The extension was communicated to the Association of Investment Bankers of India in an email dated 12 October, as per Business Standard. It applies to issues opening on or before 31 March 2027.
Normally, a change of more than 20% in issue size sends a company back to file fresh draft documents. The relaxation lifts that bar for the fresh issue, the part of an IPO where the company itself issues new shares. It does not cover the offer for sale (OFS), where existing shareholders sell.
| Point | Detail |
|---|---|
| Change allowed in fresh issue | Up to 50%, up or down |
| Applies to | IPOs opening on or before 31 March 2027 |
| Earlier deadline | 30 September 2026 |
| Condition | Main objective of the issue must not change |
| Disclosure | Addendum to the offer document |
What must companies do?
The lead banker has to justify the revision and certify compliance with the rules. The lead manager also updates the draft red herring prospectus (DRHP) for the new size. Every change must be made public through an addendum, as per Moneycontrol.
SEBI first set the relaxation in early April, when tensions in West Asia weighed on investor sentiment. Business Standard says the extension follows concerns raised by industry participants, with the geopolitical situation still strained.
What our data shows
Issue sizes do move between the draft and the final prospectus. Zetwerk's RHP raised its fresh issue to ₹2,830 crore from ₹2,600 crore in the August draft, a rise of about 9%. That is well inside a 50% band. We have not seen any statement that Zetwerk used this relaxation.
Primary market activity has stayed heavy. Our tracker shows 100 mainboard IPOs have listed in 2026, and 66 of them opened above the issue price, with a median listing gain of 6.92%. Business Standard reports that over 34 companies raised ₹39,380 crore in September, 42% of the funds raised in FY27 so far.
What happens next
The relaxation runs until 31 March 2027 for issues that open by then. Any company using it must publish an addendum, so changes will show up in filings. Track every upcoming issue on our upcoming mainboard IPO page.
