The Securities and Exchange Board of India (Sebi) has extended its relief to initial public offering (IPO) issuers, allowing them to change their issue size without additional compliance until March 2027, according to two people aware of the development and a document seen by Mint.
In April, the capital markets regulator allowed companies to increase or decrease their issue size by up to 50% without triggering additional regulatory compliance requirements. The window was available for companies opening their public issues before 30 September.
“It has been decided to permit issuer companies to increase or decrease the size of their fresh issues up to 50% without the requirement to file a fresh draft offer document with Sebi. The above relaxation on change in fresh issue size shall be applicable for issues (IPO) opening on or before 31 March 2027,” said Sebi in a letter to the Association of Investment Bankers of India (AIBI) on 12 October.
The relaxation comes with guardrails: the main object of the issue must remain unchanged, and lead managers must certify compliance with Sebi regulations. The regulator has placed the responsibility for ensuring compliance on the lead manager responsible for the issue.
IPOs with valid Sebi approvals originally expected to have launched before April 2027 include Oyo parent Oravel Stays Ltd, fintech major PhonePe Ltd, Carlsberg India Ltd, Avaada Electro Ltd, Paras Healthcare Ltd, among others