Overview
- SEBI extended the temporary rule on Tuesday to cover IPOs that open on or before March 31, 2027, allowing eligible companies to revise the fresh-issue portion of their public offers without filing a fresh draft document.
- Under the relief issuers can raise or cut the fresh-issue size by up to 50 percent without re-filing a draft red herring prospectus, a higher tolerance than the previous practical trigger of about 20 percent.
- Companies seeking a change must submit a formal application to SEBI explaining the reasons, have the book-running lead manager certify regulatory compliance, and publish an addendum and updated DRHP showing the revised size.
- The concession applies only to fresh issues that raise new capital and does not permit changes to the IPO’s primary objective or to offer-for-sale components.
- Market groups requested the extension after geopolitical tensions in West Asia weakened investor demand, and SEBI’s move aims to let issuers adjust fundraising plans without restarting the full regulatory filing process.