SEBI said the relaxation will be valid until March 31, 2027. This relaxation will allow companies to increase or reduce their IPO size by up to 50%. Previously, companies could only increase or reduce their IPO sizes by up to 20%.
For example, initially, the company decided to raise â‚ą1000 crore via an IPO. Later, they changed their mind and decided to increase their IPO size to â‚ą1500 crore or decrease it to â‚ą500 crore.
On October 12, 2026, SEBI sent a communication to the Association of Investment Bankers of India (AIBI) informing them that it would extend the deadline from September 30, 2026, to March 2027.
Earlier in April, SEBI set the relaxation date for September 30 but later extended it due to conflicts and tensions in West Asia that affected investor sentiment in the stock market.
In the old framework, companies could only make changes of up to 20% in the issue size through DRHP filing. But now they can make changes of up to 50%, that too without filing draft papers, allowing companies to make changes according to market conditions without the hassle of filing the preliminary papers over again.
The companies that are opting for the relaxation must ensure that the main purpose of their IPO does not change. The relaxation will give companies the flexibility to change their IPO plans according to the market conditions, investor sentiment, and changing business needs.
Some rules companies have to follow during the revision of IPO size
- Companies must inform SEBI of the reason for changing the IPO size.
- Merchant bankers must confirm that the company has followed all the SEBI rules.
- The lead manager must update the draft papers with the revised issue size.
- Lastly, the companies should also inform the investors of the revised issue size through an additional document.
As of September, 78 companies had raised around â‚ą94,276 crore in FY27.
More than 34 companies raised around â‚ą39,380 crore, accounting for about 42% of the total funds raised in FY27.
Moreover, the largest IPO we were all eagerly waiting for, the National Stock Exchange (NSE) IPO, was also launched in September 2026.
