India’s capital markets regulator Securities and Exchange Board of India has provided temporary relief to companies planning to go public, allowing them to cut their IPO size by up to 50% without undergoing lengthy procedural requirements. The move comes against the backdrop of weak investor sentiment triggered by ongoing tensions linked to the Iran conflict.
As per a communication shared with the Association of Investment Bankers of India, companies will now only need to submit revised offer details for approval, with SEBI expected to fast-track the review process. The relaxation will be applicable to issuers looking to raise fresh funds until September 30, provided there is no change in the primary objective of the issue.
The regulator acknowledged that geopolitical uncertainties have made it challenging for companies to mobilise funds and tap capital markets, prompting the easing of norms.
Market participants believe the move could help sustain IPO activity during volatile conditions. Companies may choose to proceed with smaller issues, focusing on getting listed rather than maximising immediate exits through offer-for-sale components.
Overall, the decision is seen as a timely intervention to maintain momentum in India’s primary markets while offering flexibility to issuers navigating global uncertainty.
