From mint · Apoorva Ajith · · 1m 40s
Sebi and AIBI discuss IPO issue size revisions
Sebi and investment bankers propose raising IPO size change threshold from 20% to 50% to ease compliance.
In brief
Sebi and investment bankers propose raising IPO size change threshold from 20% to 50% to ease compliance. Sebi and AIBI are discussing increasing the threshold for IPO issue size changes from 20% to 50% to reduce regulatory burden. Originally reported by mint.
Sebi and AIBI discuss IPO size changes
Sebi and the Association of Investment Bankers of India are discussing a revision in fundraising norms to ease the threshold for changes to IPO issue sizes.
“AIBI has made a representation to Sebi to change the 20% threshold for the filing of a fresh DRHP in case there are changes in the issue size for fresh fund raises”
Current threshold for issue size changes
Companies must file a new DRHP if issue size changes by more than 20% though the regulator has temporarily eased the threshold until March 2027.
AIBI's proposal for 50% threshold
AIBI wants to raise the threshold from 20% to 50% to align with OFS issuances and reduce regulatory burden.
“AIBI has made a representation to change the 20% threshold to 50%, which would make it at par with OFS issuances”
Market volatility impact
Fluctuating market conditions require flexibility as IPO valuations change between document filing and launch.
“Some relaxation in the threshold is justified, particularly in a market where IPO issuers are increasingly having to navigate changing valuations”
Recent IPO size changes
Oravel Stays reduced its IPO size from ₹ 6,650 crore to ₹ 3,350 crore while Hero Motors trimmed from ₹ 1,200 crore to ₹ 1,000 crore.
“Oravel cut its planned fresh issue to ₹ 3,350 crore from ₹ 6,650 crore”
Temporary threshold relaxation
The regulator temporarily relaxed the threshold to 50% in April due to market volatility and extended it until March 2027.
“The market regulator temporarily relaxed the threshold for fresh issues to 50% in April”
Safeguards for flexibility
The relaxation requires the main object of the issue to remain unchanged and lead managers to certify compliance with Sebi regulations.
“the main object of the issue must remain unchanged and lead managers must certify that the offering complies with Sebi regulations”
IPO activity in 2026
104 issues raised ₹ 1.55 trillion in 2026 compared with 63 issues of ₹ 1.19 trillion in 2021.
“There have been 104 issues for a combined ₹ 1.55 trillion so far in 2026, compared with 63 issues of ₹ 1.19 trillion in 2021”
Market conditions
The Nifty 50 declined 10% this year amid geopolitical tensions and rising global bond yields.
“The Nifty 50 has declined about 10% so far this year amid geopolitical tensions”
In short
Sebi and AIBI are discussing increasing the threshold for IPO issue size changes from 20% to 50% to reduce regulatory burden.
