Companies Can Adjust IPO Share Count by 50% Without New Drafts, SEBI Announces

SEBI’s latest circular, dated 12 October, gives issuers the latitude to revise the share count of their public offering by up to 50 percent without submitting a fresh prospectus draft. The rule applies only if the fundamental objective of the issue – such as raising capital for expansion or debt repayment – is unchanged. Merchant bankers must accompany the amendment with a clear rationale, and all investors must be informed of the change through a supplementary annexure. Industry participants welcomed the extension, saying it responds to repeated requests for a more flexible framework during periods of heightened geopolitical uncertainty.