SEBI lets IPO issuers tweak issue size by up to 50% without new draft filing until March 2027

SEBI has extended its relief for IPO issuers, permitting a rise or fall of up to 50 per cent in fresh issue size without filing a fresh draft offer document, for issues opening on or before 31 March 2027. The regulator said the main objective of the issue must stay the same and the lead manager must certify compliance, placing the on‑us on the lead manager. The change follows an April decision that allowed the same flexibility for companies whose public issues were slated before 30 September, after the Association of Investment Bankers of India (AIBI) and several investment bankers asked for it amid market volatility. SEBI’s letter to AIBI on 12 October confirmed the new rule and noted that the existing 20 per cent change threshold for fresh issues now rises to 50 per cent, matching the limit already in place for offers for sale. The regulator also extended the validity of IPO approvals that had observation letters expiring between 1 April and 30 September 2026, keeping them valid until 30 September. Companies expected to list before April 2027 under the extended approval include Oyo parent Oravel Stays Ltd, fintech PhonePe Ltd, Carlsberg India Ltd, Avaada Electro Ltd and Paras Healthcare Ltd. So far this year India’s markets have seen 102 mainboard IPOs and 183 SME IPOs, according to Chittorgarh.

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The move aims to give issuers breathing room in a volatile market, reducing the need for fresh paperwork when demand shifts, while keeping the core purpose of the capital raise intact.