IPO New Rule: Capital market regulator SEBI has allowed IPO-bound companies to increase or decrease the size of their public issue by up to 50 per cent without filing a fresh draft red herring prospectus (DRHP).
According to media reports, the new SEBI rule marks a significant departure from the regulator's existing rules. As of now, companies are allowed to make a 20 per cent change in the IPO size without filing DRHP afresh with SEBI.
IPO New Rule Amid Market Volatility
The reports said that SEBI relaxation will, however, be granted on a case-to-case basis. The decision is aimed at assisting companies in navigating the increased market uncertainty.
SEBI's new rule for IPOs will be applicable to public issues opening on or before September 30, 2026.
The relief in IPO size, reports said, will be temporary for companies that are planning to list their shares on exchanges.
The relief in IPO size will be granted to companies only if there is no change in the main object of the issue.
SEBI has even said that it will not penalise companies if they fail to meet the requirement of having 25 per cent of their stock held by public shareholders.
IPO New Rule: 143 Companies
According to data available, SEBI has given approval to 143 companies to launch their IPOs as of April 2, 2026. These companies will together raise Rs 1.74 trillion through IPOs.
