- SEBI extends IPO issue-size relaxation deadline to March 31, 2027 from September 30, 2026
- Companies can resize fresh IPO issues by up to 50% without filing a new draft prospectus
- Rs 94,649 crore raised through 161 IPOs in Q2 highlights primary market activity scale
India's investment bankers have welcomed an extension of regulatory relief that allows companies to resize fresh IPO issues by up to 50% without filing a fresh draft prospectus, as Rs 94,649 crore raised through IPOs in the September quarter underscores the scale of activity in the primary market.
The Association of Investment Bankers of India (AIBI), which had represented the operational challenges faced by issuers and merchant bankers, said the extension would help companies respond to evolving business requirements and market conditions while reducing procedural hurdles.
"IPO sizes may need revision with evolving business needs and market conditions. This SEBI's relaxation reduces procedural hurdles and makes the IPO process more efficient," AIBI chairman Mahavir Lunawat said in a statement on Tuesday.
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The Securities and Exchange Board of India's decision extends the relaxation to IPOs opening on or before March 31, 2027, from the earlier September 30, 2026, deadline for draft prospectus filings. Introduced in April amid heightened uncertainty following the West Asia conflict, the measure had expanded the permissible change in fresh issue size from the earlier 20% threshold to 50%, subject to prescribed conditions.
The extension gives companies and their investment bankers more time to adjust fundraising plans without automatically having to restart the draft-prospectus process when the proposed fresh issue size changes.
The scale of fundraising highlights the significance of the relief. Mainboard IPOs raised Rs 90,482 crore through 69 issues in July-September, while 92 small and medium enterprise (SME) offerings mobilised Rs 4,167 crore. Together, the 161 offerings raised Rs 94,649 crore, according to AIBI data.
September was the strongest month, with combined fundraising of Rs 41,504 crore, accounting for nearly 44% of the quarter's total. Mainboard offerings raised Rs 39,381 crore across 34 issues, while SME IPOs raised Rs 2,123 crore through 52 offerings.
The mainboard IPO pipeline adds to the stakes. AIBI has cited Rs 3.86 lakh crore in proposed offerings, including companies awaiting regulatory approval, highlighting the potential scale of future fundraising.
Under the extended framework, lead managers can file an updated offer document reflecting the revised issue size, provided the main object of the issue remains unchanged. Relevant sections of the draft prospectus must be updated, an addendum made public and applicable regulatory requirements met. Lead managers remain responsible for adequate due diligence and justifying the revision.
AIBI said the measure balances greater flexibility in capital raising with transparency, due diligence and investor protection. The relief does not remove disclosure requirements or permit a change in the main object of an issue.
For issuers, the practical benefit is a greater ability to recalibrate fresh fundraising plans as business needs and market conditions evolve, without the additional procedural burden of filing an entirely new draft prospectus.
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