SEBI has allowed companies to reduce IPO size by up to 50% without refiling draft papers, fast-tracking approvals amid market volatility linked to the Iran conflict.
Pressure on the Nifty, sustained FII selling and sharp swings in oil prices have made it harder for companies to launch public issues.
Major IPOs including NSE, Jio Platforms, Flipkart, SBI Funds Management, Zepto and PhonePe are lined up, but timelines may depend on geopolitical stability.
War Jitters Hit Dalal Street: Sebi Lets Firms Slash IPO Size by Half
Temporary regulatory relief aims to keep India’s IPO pipeline moving as geopolitical tensions, oil volatility and foreign outflows dampen investor appetite.
Sebi
Summary
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The Securities and Exchange Board of India (SEBI) has allowed companies to reduce the size of their initial public offerings (IPOs) by up to 50% without having to refile extensive paperwork, as geopolitical uncertainty stemming from the Iran war has complicated fundraising plans, Reuters reported, citing an email reviewed by the news agency.
Under existing norms, companies are required to refile IPO documents if the issue size changes by 20% or more. However, the market regulator will now permit firms to simply submit a revised offer size for approval, with the review process set to be expedited, according to the email sent to the Association of Investment Bankers of India.
The Nifty has remained under pressure, investor sentiment is weak, and foreign institutional investors have been consistent sellers. The ongoing Iran conflict and sharp swings in oil prices have added to uncertainty, making it a difficult environment for companies to launch offerings.
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The relaxation will be available to issuers planning to raise fresh capital before September 30, provided there is no change in the primary objective of the issue, the email noted.
“By end-September, the Middle East crisis may either stabilise, or companies will be in a better position to plan their fundraises,” Reuters reported, citing a source familiar with the matter.
According to the email, the easing of rules aims to address challenges faced by market participants in mobilising funds amid heightened global uncertainty.
Separately, last week SEBI extended timelines for companies whose IPO approvals are set to lapse between April 1 and September 30, allowing them additional time until September 30 to complete their offerings. The regulator also said firms would not face penalties for failing to meet the requirement of maintaining a minimum 25% public shareholding within this period.
As of April 2, SEBI had cleared 143 companies to collectively raise ₹1.745 trillion ($18.7 billion) via IPOs, according to data from Prime Database, Reuters reported.
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India's IPO market has slowed sharply this year, with just 19 companies hitting the primary market so far, as volatility, foreign outflows, and geopolitical tensions keep issuers on the sidelines.
Big-ticket IPOs in the pipeline
Among the anticipated listings is the long-awaited IPO of the National Stock Exchange (NSE), which could raise over ₹20,000 crore. Jio Platforms is also expected to tap the market in what could become India’s largest-ever listing, with a potential issue size of around ₹40,000 crore.
Other large offerings in the pipeline include Flipkart, which has shifted its holding structure to India ahead of a likely listing, asset manager SBI Funds Management, and new-age companies such as Zepto and PhonePe.