Markets regulator Sebi has extended a key IPO relaxation allowing companies to increase or decrease the size of fresh issues by up to 50% without filing a fresh draft red herring prospectus. The move gives issuers and merchant bankers greater flexibility to resize offers amid record activity in India’s primary market. The relaxation will now apply to IPOs opening on or before March 2027, according to the Association of Investment Bankers of India.
The earlier relaxation was available for draft papers filed until September 2026. Sebi first allowed the 50% resizing flexibility in April this year, against an earlier deadline of September 30, as market volatility made IPO sizing more difficult for issuers and bankers.
