The Securities and Exchange Board of India (SEBI) has extended a relaxation allowing companies to increase or reduce the fresh issue component of their initial public offerings (IPOs) by up to 50 per cent without filing fresh draft offer documents.
\n\nAccording to the Association of Investment Bankers of India (AIBI), the relief will apply to IPOs opening on or before March 31, 2027. The earlier window ended on September 30, 2026.
\n\nThe extension follows representations from AIBI highlighting practical difficulties faced by companies and merchant bankers in revising fresh issue sizes during the IPO process.
\n\n“IPO sizes may need revision with evolving business needs and market conditions. SEBI’s relaxation reduces procedural hurdles and makes the IPO process more efficient,” said Mahavir Lunawat, Founder of Pantomath Financial Services Group and Chairman of AIBI.
\n\nLunawat said the measure would give issuers and merchant bankers greater flexibility while retaining requirements relating to transparency, due diligence and investor protection.
\n\nUnder the regular framework, a change exceeding 20 per cent in the estimated fresh issue size requires a fresh draft filing. The relaxation allows companies to revise that component by up to 50 per cent, subject to prescribed conditions.
\n\nThe main objects of the issue…
Original source: https://www.timesnownews.com/business-economy
